Excess HSA Contribution made in 2022, caught in 2024, and excess refunded in 2024

[921carpenter]

While doing my 2023 taxes I realized that I made an excess HSA contribution of $150 in April 2023 for the 2022 tax year.  So for 2022 I contributed a total of $8450 vs the $8300 allowed.  In March 2024, I requested and received an excess contribution refund of $150 from the HSA bank. 

I am confused as how to report this on my 2023 return in the HSA section.

1.  What do I input as a response to this question:  Excess HSA contributions carryover from 2022 still in HSA account:  Do I put $150 or $0.  The funds were returned in early March 2024.

2. There is a note that says: Note: the amount here is carried over from your 2022 return, adjust or enter the actual remaining prior year excess contribution still in your HSA account.  I am not sure how to decipher that.  

After the note there are 2 boxes:  Do I put my 2023 year contributions in the 1st box ($8750) and the 2022 excess contribution of $150 in the 2nd box?

Any contributions you personally made (not through your employer)
Any contributions you personally made but withdrew before April 15, 2024

3. Then when I get to section on “Did you overfund HSA in 2022”, it asks how much I reported on Form 5329, line 48 in 2022  Since I only just recently realized the  2022 excess contribution, I did not file Form 5329 with my 2022 tax return.  Do I put 0 there or the $150.

bottom-line:  Since I overfunded HSA for 2022 calendar year by $150, I believe I should be taxed on the $150 plus earnings that I received as a refund of the excess contribution in 2024, plus any penalty (6%).   However, I won’t get the 5498s until after I file taxes.   Help!

Or:  Do i wait until 2025 when I file my 2024 taxes to report the return of the excess contribution as it was paid out in 2024?  By then I’ll have the document from the HSA provider showing the return of the excess contribution.   

[BillM223]

Generally, if you had excess contributions in 2022 but withdrew them before the due date of the return, this has no effect on your 2023 return.

This is because if the excess contributions were "employer" contributions (i.e., either from your employer or from you through payroll deduction), when the excess if discovered by TurboTax, the excess is immediately added back to your income, in this case your 2022 income.

And because you withdrew the excess in a timely manner then there is no 6% excise tax on the carryover, since there was no carryover.

Now, some questions for you:

"Excess HSA contributions carryover from 2022 still in HSA account"

"Note: the amount here is carried over from your 2022 return, adjust or enter the actual remaining prior year excess contribution still in your HSA account."

Where did you see these statements? They are not in the normal HA interview that you should have gone through.

Did you see the question, "What type of High Deductible Health Plan (HDHP) did [name] have on December 1, 2022?" What did you answer? Did the statements in italics above appear in the interview screens that followed?

***

" Since I only just recently realized the  2022 excess contribution, I did not file Form 5329 with my 2022 tax return.  Do I put 0 there or the $150."

When you saw the question, "Did you overfund your HSA in 2022?" because you withdrew the excess in a timely manner, you should answer NO to this question. TurboTax really wants to know if you carried over the excess (which you did not). So don't worry about the 5329 - your 2022 return did not have one.