HSA overfunding

[TMDWC]

I am so confused by the message I overfunded my HSA account for 2023. I have submitted taxes, paid, and took out the overfunding of the HSA, but it doesn't make sense.

I put $4600 into my family account (I carry a family plan to include my dependent child). This was noted on my W2 and on 1099-SA. The 1099-SA then says I had a distribution of $1461. TurboTax says this is the amount I overfunded so this is what I withdrew. I went back into the program and checked that I had HDHP and Family Plan checked. I did. I asked my payroll department and they say I did not overfund.

I don't know if I should amend my return, change my amounts put in this account, or leave everything as is.

[BillM223]

OK, let's see...

You were covered by a Family HDHP plan for all year? Or, at least, on December 1, 2023 (it make a difference)?

You had a code W in box 12 on your W-2 with an amount of $4,600? This amount should not have appeared on the 1099-SA, since this form has nothing to do with contributions.

TurboTax said that you had an excess of $1,461, and you asked the HSA custodian to withdraw this amount as "an excess contribution." 

This generated a 1099-SA? What was the distribution code on the 1099-SA and what was in boxes 1 and 2?

Your data does not work, yet. 

Were your number of months limited? If so, which months were they?

Did you have a carryover excess contribution? Can you see your 8889?

Please reconfirm the facts I have stated, because there is something fishy with what I see so far.

[Mike9241]

what distribution code? it should have been 1 if the distribution was for 2023 medical expenses.

if the distribution was for a 2022 excess that you withdrew timely, only the income would be taxable in 2023 

if it is code 1, you did something wrong but we can't see your return to determine what it was. $4600 is not an excess for a family plan HSA contribution provided you were covered every month by a HDHP and did not have disqualifying coverage

the 1099-sa would represent money you had already taken your HSA. You doubled up if you took it out again in 2024.  what year is on the form? 

you may need to pay the money back to avoid a non-qualified withdrawal.

your payroll contributions were included in box 12w of your w-2 and box 1 wages were reduced for those contributions. (12w would include any employer match) . did you enter those contributions as personal contributions on line 2 of the 8889? if so, that's wrong. Your contributions reduced Box 1 wages on the W-2. You're doubling up if you included them in box 2 of the form. It should be zero unless you made nonpayroll contributions.