2023 return:
Amend the 2023 return. Remove the $13 as a direct HSA contribution (in the HSA interview). Now there should be no excess and no carryover.
2024 return:
Enter the 1099-SA. If the distribution code is "2", then the amount in box 1 ($13) will be ignored, and the amount in box 2 (earnings, $1) will be added to Other Income.
If the distribution code is "1", then the box 1, then when you (he) is asked if this was all for medical expenses, answer "yes". The amount in box 1 will be ignored. Is there an amount in Box 2? If so, it will probably be ignored, too (it's not normal to have earnings in a regular distribution). If the $1 gets added to Income, I would say ignore it, because it's not worth fussing over.
2025 return
If things go as planned, there will be no effect on the 2024 tax return.
As always, please document everything in case any one asks. With luck, this will be the end of it.
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