So I didn't use Turbotax for 2020's taxes, but I'm using it now for 2021's taxes.
I filed form 5329 with my 2020 taxes (before April 5th 2021), with an amount of $984 in line 48. This was the amount by which I overfunded the HSA accounts.
I probably withdrew the excess before May 17, 2021, but I don't think I withdrew it before filing my taxes. You have to withdraw the excess and any gains. To be sure I got any gains, I requested a withdraw of $985. The actual withdraw was for $985 and included $0.16 as "earnings on excess contributions". I was surprised the HSA company calculated this out, I had assumed they wouldn't.
This tax season I received the 1099-SA for calendar year 2021.
My entire HSA contributions were not declared to be in excess. Turbotax has a HSA summary page with the following information:
Deduction
Total distributions
Taxable distributions
Taxable earnings on excess contributions
Tax-free employer contributions
Excess employer contributions withdrawn
All my 2021 HSA contributions are listed under 'Tax-free employer contributions'. But the 'Deduction' category has $984 listed in it, and the 'Excess employer contributions withdrawn' has nothing listed in it.
