To be honest I don't want to file an amended return if I have to override TT forms and file paper returns. If I understand I have a few options here, please let me know if any of these options seem right to you.
1. Return the check for 2023 excess contributions to the custodian and do nothing and wait until the next tax year. We already requested all contributions for 2024 to be returned and she stopped contributing to her HSA in 2024, she has zero contributions for year 2024 now. Even if the IRS asks to file an amended 2023 return, the tax on those 3 month contributions of $692 is not a huge deal.
2. Do nothing and keep the check for October-December 2023 contributions and wait until next tax year for new tax forms incl. 2024-1099SA which should include 2023-2024 excess contribution amounts and file 2024 taxes according to those forms.
3. Keep the check for 2023 contributions and file a 2023 1040-X return showing returned $692 contributions plus earnings as other income on schedule 1. This is my least favorite option because I would have to mess with total HSA contribution amounts and other issues and this would most definitively cause problems while filing 2024 taxes.
...or maybe there are other options. Thanks
