BillM223
Expert Alumni

Deductions & credits

How did you know that you had excess contributions for 2025? Did TurboTax tell you this? I wonder if the reason that you don't see where the excess contributions are added back to your income is because TurboTax did not think that you had excess contributions.

 

You always obtain the "withdrawal of excess contributions" from the HSA custodian, and never from the employer, so your W-2 never changes in any case.

 

If you did not have any excess contributions in fact, but took money out anyway, then you have made a distribution for reasons other than qualified medical expenses. Such distributions are taxed as ordinary income and have an additional 20% penalty.

 

If this is the case, that TurboTax did not report an excess, so you actually did not have an excess and should not have withdrawn it, then thing to do is to contact your HSA custodian and report a "Mistaken distribution". If they accept this (be nice because they don't have to do this), then you will need to sign a form and send them the money (from the 1099-SA) in return, which they will redeposit into your HSA. Trying to fix this any other way will foul up the paperwork for the HSA and your tax returns over time.

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