you paid taxes on the excess in 2022 and should pay taxes on the $50 income in 2023
then that $3700 is a personal contribution for 2023. Not an employer contribution
so we have 1850 employer 3700 personal less 3850 allowed so 1700 is an excess. the excess comes from the personal portion and for which you already paid income taxes in 2022 so you don't pay income taxes on that again in 2023
as a matter of fact, you should be getting a $2000 deduction for the personal portion of the HSA contribution in 2023
