HSA over contribution withdrawal

[kash2]

I did overcontribution of $ 9550 in my HSA account in 2023 and already get the excess contribution of $9550 to my personal account in 2023. I have high deductible family plan in 2023. The insurance company also contributed $1800. Is this $1800 is considered contribution that i did as it not shown on W-2 and where to enter this amount in tax return. How to enter the amount in tax return the excess contribution of $9550 that i already get back to my personal account.

[BillM223]

Who is this insurance company? Is it your employer or what? 

How did you contribute that $9500 in 2022? Through your employer through a payroll deduction? Or did you send it directly to your HSA custodian? Either way, either your employer or your HSA custodian let you down, because no one has the ability to contribution that large a dollar amount to one HSA in one year.

Tell me where this $1,800 came from and how it got to your HSA, so I can tell you how it should have been handled.

Please tell me what actually happened so I can describe what should have happened.

[kash2]

It was total contribution of $15500 to my HSA account  in 2023 through  payroll deduction as payroll did not stop contributing and I realized late. So I withdraw 9550 dollars from HSA account and transferred to my bank account as I overcontributed. I have 1099 SA Form showing that distribution. $1800 contributed directly to HSA account by the medical insurance company that offered the high deductible plan and it was 150 dollars per month with total of 1800 dollars.  

[BillM223]

1. Are you 55+

2. Are you filing married joint?

3. Does your spouse have an HSA?

4. Has your employer or insurance company every talking to you about "pass-thru premiums" where some of the insurance premium paid by your employer to the insurance company is "passed through" to your HSA?

5. The amount of the excess you withdrew from the HSA - where did this amount come from? Did TurboTax tell you the amount of the excess?

6. When you withdrew the "excess" from your HSA, did you tell your HSA custodian that this amount was an "excess contribution"?

7. When you received a 1099-SA for this amount, what was the distribution code in box 3? 1 or 2?

8. "Is this $1800 is considered contribution that i did as it not shown on W-2 and where to enter this amount in tax return." Yes, ANYTHING from ANYONE that goes into your HSA is considered a contribution that you have to account for. 

In this case, this $150/month is considered a "pass-thru premium". 

In the HSA interview in TurboTax, there is a screen, "Did your employer tell you about any other contributions?". 

Answer YES and three additional lines appear. 

The third line is "Employer and payroll contributions not reported in box 12 of your 12". 

Put the $1800 into this box. 

This $1,800 will be added to line 9 on your 8889, per the IRS Instructions.

Please answer the questions above, especially #5.

[kash2]

Thank you very much for your help. I fixed it and now its showing as an income of $9550 on schedule 1 ( Form 1040)  i.e., Income from Form 8889 so I will be paying tax on the excess contribution that I withdraw.