"When all is entered into TT I'm still getting the 6% tax fee of $111 in the Other Taxes section."
Somewhere along the way, you had an extra $111 in excess contributions, sorry it's not immediately obvious in reading the text above where it came from.
If you are still working on your 2023 return, go back to the HSA interview, and see if you can get TurboTax to tell you that you have an excess of $111. Then try to tell TurboTax that you will remove that amount.
If TurboTax lets, you, then this is still a "short-term excess". Call the HSA custodian today (April 15th) and ask for the "withdrawal of excess contributions" - the $111 and its earnings (the custodian should calculate that).
If TurboTax won't let you withdraw this amount because it was from a previous year, then the $111 is a "long-term excess", and removing it by April 15th won't do any good. Instead you need to treat it like a "long-term excess" (above), and just withdraw that amount not as excess contributions, (this can be done any time before you do your 2023 return in early 2024).
You will get a 1099-SA with a distribution code of '1' (because you did not ask for the withdrawal of excess contributions) and you will mark it as NOT for qualified medical expenses. This will adjust your income, and maybe add a 20% penalty, but you will be done withy it.
I am sorry, but I needed to ask you what TurboTax's reaction was to the $111 excess, to see if we could treat it as a "short-term excess" or a "long-term excess".
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