No, there is no software error.
When TurboTax discovers that you have excess contributions and that these contributions came from "employer contributions" (i.e., in Box 12 of your W-2 with a code of W), then TurboTax immediately adds the amount of the excess contribution to line 8f on Schedule 1 (1040). This is why you do not have to go looking for a way to add the excess back to income - TurboTax has already done it for you.
This is also why TurboTax asks "if your excess HSA/MSA contribution was made by your employer and deducted from the wages in box 1 of your W2", because if the answer is "yes", then TurboTax knows that the excess was already added back to income so doesn't need to do anything else.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
