Thank you for the token.
It is far easier to see the whole return than our back and forth. I will admit that because of the number of HSA questions I am doing the day - often at the same time - I can easily misread what you say.
Your return looks perfectly normal.
You had excess employer contributions of $743. This is reported on line 12B (please ignore what I said in the previous post about 12B, I was still channeling 16, which has nothing to do with our issue).
This excess is NOT a distribution (yet). It was created the moment TurboTax detected the excess, and placed on line 8f of Schedule 1 (1040). This is why it is on line 12A.
On some previous pass, you told TurboTax that you would withdraw the entire $743. So now the $743 appears on line 12B, as it should. Just before you indicated that you would withdraw this amount, TurboTax reported that you had an excess, and would you withdraw it.
On subsequent passes, TurboTax does not report that you have an HSA excess, because it remembers that you said you were going to withdraw the $743.
This Amount - the amount of excess to withdraw - is a troublemaker because it is one of the primary candidates for a number that "sticks". For example, if you went through the HSA interview again and changed something (like the contributions), this does not change the stuck number, but you don't see the screen on which to change it. This is why I have people do the HSA RESET, because that clears out all numbers for the HSA, some of which you can't easily change any other way.
Oh, one more thing. I think you said up above some where that the withdrawn amount is not taxable. But it is taxable (this is why it's on line 8f), it's just not subject to a penalty, because you withdrew it in time.
OK, what have we left?
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