HSA Over contribution correction error

[rs-123]

Hello, in 2024 my employer over-contributed to my HSA by $100. In February 2025, I accidentally removed one dollar more than I was supposed to using the "Return of Excess" form through my HSA provider. So I removed $101 + interest. 

On my 2024 tax return, TurboTax does not let me enter that I removed $101 excess. Instead it says I should enter $100.

In this case, can I enter $100 was removed, and on my 2025 return I can somehow have $1 + interest show up as income from schedule 8889? If not, how can I fix this?

[rs-123]

Still need an answer to this

[RobertB4444]

In TurboTax, after you have entered the $100 return of excess, you will need to create a separate 1099-SA for a $1 distribution.  Enter the 1099-SA from the same source that has you HSA account.  Enter $1 in box 1, code 1 in Box 3 and check the HSA box.  Then, when the system asks if this was used to pay medical expenses say 'no' and it will be added to your taxable income.

@rs-123