What I am seeing makes no sense (I guess you have the same feeling).
The first thing I would do in this short timeframe is to delete your W-2 information as well as your HSA information and re-enter it. Somehow TurboTax not only thinks that you (Gary) contributed 1,100 to his HSA but the 2,300 that Sandra contributed to her HSA through her employer has disappeared. And Gary has an excess contribution which may or may not be valid, but seems suspicious in itself.
If you auto-imported your W-2(s), sometimes this can cause spurious data.
Please do the following:
1. make
a copy of your W-2(s) (if you don't have the paper copies)
2.
delete your W-2(s) (use the garbage can icon next to the W-2(s) on the Income
screen
*** Desktop***
3. go to View (at the top), choose
Forms, and select the desired form. Note the Delete Form button at the bottom
of the screen.
*** Online ***
3. go to Tax Tools (on the left), and
navigate to Tools->Delete a form
4.
delete form(s) 1099-SA (if one), 8889-T, and 8889-S (if one)
5. go
back and re-add your W-2(s), preferably adding them manually
6. go
back and redo the entire HSA interview.
Make sure that you mark each W-2 as belonging to the correct spouse, and also that when you are asked, that Sandra contributed only to her HSA, not split the contribution with Gary's (that's a few screens after you enter the W-2).
