Right way to correct a wrong entry in 5329 (HSA Excess) in 2022

[yasserak]

Hi

I did a wrong entry in 2022 Federal tax by adding HSA Excess Contribution in form 5329. 

Now, that excess contribution (which I didn't actually make) is still showing in 2023 Federal Tax return and I will pay another 6% penalty on it since I did contribute during 2023 tax year to HSA as well. 

Is the right way to fix this:

    1- Submit 1040X to amend 2022 to undo the excess reported in 2022 and submit 5329 as well to show that           there is no excess in 2022.

     2- Once I do that, then when I submit 2023 Federal

            - Input ZERO in the field 'Excess HSA contributions carryover from 2022 still in HSA account' Since I                       submitted the amendment 

             - Input ZERO in the field 'Amount from 2022 Form 5329, Line 48' ... this is currently not Zero in 2022,                  but I will submit the Amendment First and I will make sure it will be zero in the Amendment.

Thank you

[Mike9241]

yes you'll need to amend 2022

then you'll need to go to the 2023 carryover worksheet to eliminate the excess carryover from 2022