1040 is incorrectly showing excess HSA contribution that was cured with a distribution as income

[Travis100]

I had a $229 excess HSA contribution for 2024 that I have cured through a distribution in 2025 before the 4/15/2025 tax deadline.  I went through the HSA Q&A in TurboTax online.  I indicated that I had withdrawn the excess $229 HSA contribution before the 4/15/2025 tax deadline.  In the "HSA summary" section of the Q&A, it seems to recognize the cure as it shows the $229 in the last line labeled "Excess employer contributions withdrawn".  However, when I preview my return, the $229 is still being included in line 8 of the 1040 as additional income from Schedule 1, line 10.  There appears to be a glitch in the software.  Can you please help me with this issue?

[KeshaH]

Withdrawals of excess HSA contributions are subject to income tax but not the penalty.

If you made HSA contributions through your employer, those contributions are pre-tax. They're not included in your wages on your W-2. Therefore, any excess contributions that are withdrawn have to be added back to income since they were incorrectly deducted. TurboTax is correctly adding the withdrawal to income.

However, because you did withdraw the excess contributions, you're not subject to the excess contribution penalty or the HSA penalty.