I have created a test that more closely resembles your situation: excess contributions in 2025, and a 1099-SA withdrawal of the excess in the same year (late 2025 or early 2026). Does this match your situation?
I answered the "Tell us if your excess HSA/MSA contribution was made by your employer and deducted from the wages in box 1 of your W2" question with "Yes". In the HSA Summary, the Tax-free employers contributions are zero, not $1,020.
Do me a favor. When you get to the HSA interview where it says that the $1,020 is "Tax-free employers contributions ", please go see your 1040 Preview (do you know how to get there?). Look to see if the $1,020 (or $1,020 plus whatever interest was in box 2 on the 1099-SA) is on line 8f on Schedule 1 (1040).
If the $1,020 is not on line 8f, then the $1,020 really is tax-free, and we have a different issue here.
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