Right, I'm going to wait until the HSA actually completes my request to finish amending my return, but they should do it correctly since I chose withdraw excess contribution.
The $ amount in excess will then be income on my 2024 amended return and then any interest income on the account that was generated from the excess contribution should be distributed as well and that will become other income on my 2025 return done in early 2026.
The verbiage does throw me off, but I agree that I do believe Option 1 is the correct option to choose, so it calculates it correctly.
