Deductions & credits

you will have to amend 2023 and 2024 to show $0 deductible HSA  contributions. You will likely owe income taxes and penalties due to the lost deductions. (in Turbotax you indicate you had no coverage by a high-deductible plan - for excess contributions withdrawn after the end of the year indicate zero because that was not done by the due date of the return). In the 2024 return you need to enter the excess contributions from 2023 and then in 2025 the excess contribution based on the 2024 form 8889  

Contact your HSA custodian to discuss the excess contributions. They can guide you on how to withdraw the excess funds. This must be done by 4/15/2026 to avoid some of the penalties. you will be taxed on any income withdrawn. 

 

 

you may want to seek the help of a pro to make sure the forms 8889 amd 5329s are completed correctly

for example, one issue is that when you amend 2024, the carryover history will not reflect the excess from 2023 which is necessary to calculate the cumulative excess for 2024 

 

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