Remind me, did you have access to the full annual HSA contribution limit for this year (2023)? That would be $3,850.
You had $1,850 with the code W amount in box 12 on your W-2. That would leave room for $2,000 in personal contribution. You see "Deduction - $2000 "? This $2,000 should show up on line 13 on Sch 1 (1040).
However, I think your carryover was larger than $2,000, right? Maybe it was $3,700? So, $2,000 to be used up this year and $1,700 to report as excess.
"Excess employer contributions withdrawn - $0 (I feel like the $1700 I'm over and took out should go here)" - If my forensic reconstruction is correct, then the excess was not in the employer contributions but in the carryover, which is counted as a personal contribution. I believe that TurboTax asks you where the excess came from when it starts talking about the excess.
Anyway, since it was not employer contributions that was in excess, the excess was not added to Other Income. Instead the amount on line 13 (Sch 1 (1040) is reduced.
Remember to call the HSA custodian to ask for a "withdrawal of excess contributions".
If TurboTax did not object to you withdrawing the excess this year, then you are OK. However, you need to look to see if you have a form 5329 again. If you have an entry on line 48 on your 5329, then you are carrying over an excess to 2024.
If you have an excess on line 48, then this will be reported as a personal contribution (line 2 on the 8889), so make sure that you reduce your HSA contributions so that the $1,700 will fit along with it under your 2024 annual contribution limit. This is the first option if "Fixing the Long-term excess".
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