You should receive a form 1099-SA from your HSA Plan Administrator, with a Code 2 in Box 3 on the form, indicating a distribution for an Excess Contribution.
Since your 1099-SA indicates you did not use the distribution for qualified medical expenses, you will pay income tax on the portion you used for nonqualified expenses. You report the taxable amount on the “other income” line of your tax return and write “HSA” beside it.
You will also have to pay an additional tax of 20 percent on the taxable portion of your distribution, which will calculate on Form 8889. (TurboTax will handle the calculations and fill in all the right forms for you.)
Here's more detailed info on Form 1099-SA.
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