couldn't duplicate your issue, but I am using a desktop edition, whereas you may be using online.
This forum has no access to your return. Please recheck all your entries for the 1099-SA and the HSA. On Form 5329, you need to see Part VII, line 47, where the excess shows up. Based on what you provided, I would agree that the excess is only $40.
The 1099-SA should have code 1 in box 3, (assuming the withdrawal was entirely for medical expenses. Amounts on the 1099-SA should not affect the calculation of any excess, regardless of the code.
If you can fix the issue, you will need to contact support. You can allow the technical person to view your return to nail down what is causing this. It could be a TurboTax bug, but I believe you are the only one so far this year that has this issue.
