TurboTax should have reported the excess. This is often different from what taxpayers think is the excess, because it is not easy to calculate it (things got into it that taxpayers don't think about).
Did you ask for the withdrawal of excess contributions from your HSA? In that case, what you were sent was probably the excess you asked for plus the earnings for the excess while it was in the HSA. The excess should be in box 1 of the 1099-SA (if you have gotten it yet), and the earnings will be in box 2. Box 3 should have a distribution code of 2, which tells TurboTax to add the earnings to your Other Income, and ignore the excess.
The 1099-SA will be added to your 2023 return done in early 2024.
As for Line 12, this is an all-too-common situation where a number has gotten "stuck". In this case, you entered the amount of excess to withdraw after the end of the year on one pass, then wanted to change it on another pass, but the screens in TurboTax don't change that amount.
To fix it, you need to do an HSA "Reset", wherein you delete all HSA data. To do so, please do the following:
***Reset***
1. make a copy of your W-2(s) (if you don't have the paper copies)
2. delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income screen)
*** Desktop***
3. go to View (at the top), choose Forms, and select the desired form(s) 1099-SA (if one), 8889-T, and 8889-S (if one). Note the Delete Form button at the bottom of the screen.
*** Online ***
3. go to Tax Tools (on the left), and navigate to Tools->Delete a form
4. delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)
5. go back and re-add your W-2(s), preferably adding them manually
6. go back and redo the entire HSA interview....
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