Contributed and used both FSA (spouse) and HSA (mine) in 2020. How to fix?

[allosaur83]

@HopeS  Thanks for this answer. All of the distributions were used for medical expenses.

So, to be clear: we don't need to do anything special for the distributions for medical expenses from the HSA (even though those medical expenses happened during the year when we had overlapping HSA/FSA), correct? So then all we need to do is withdraw the contributions she made during the year, and then report that as taxable income. 

[HopeS]

If you overfunded or weren't eligible to contribute to your HSA in 2022, you'll need to withdraw the excess amount by April 17, 2023, to avoid a penalty (October 15 if you filed an extension).  As long as you withdraw the excess you won't be penalized. 

You will be asked in the interview if there is an excess contribution, Your response should be "No" if the amount is withdrawn. See steps below:

1. Open your return and select Search
2. Search for hsa and select the Jump to hsa
3. Answer the questions until you get to the Let's enter your HSA contributions screen
4. Make sure you didn't accidentally re-enter the amount already listed (from box 12 of your W-2) as this will incorrectly double your total contribution amount
5. Continue through the HSA screens, making sure you answered all questions correctly
6. If you overfunded your HSA last year but withdrew the excess by the due date of your 2021 return, answer No to Did you overfund your HSA in 2021?

Do remember you will need Form 1099-SA from the plan administrator to report the qualified distributions.

Please review the link below for more information:

HSA Contribution

@allosaur83