Should I request the W2 correction for the HSA contribution reverse?

[joedeng002]

I changed employer last June.
My first 6 month HSA contribution at the old employer's payroll is $2270, higher than the $1800 contribution limit for 6 months. Before I resigned on June 2021, I requested a HSA contribution reverse of $470. This $470 was refund to my bank account, I need to pay tax. (federal, state, social security, and medicare tax)

This $470 was contributed on April 2021, and it was withdraw on June 2021.
I did not buy any stock, ETF, fund or bond in my old employer's HSA account.
The interest rate of the cash position in the HSA account is pretty low. So no earning on this $470.

Now my W2 statement from my old employer says my HSA contribution at TMI is $2270. {LessCafe 125 HSA (W-Box 12)}
Should I contact the old employer to correct the HSA contribution amount to $1800?
I contributed another $1800 into my HSA account at my new employer in the 2nd half year of 2021.

In May 2021, I use my HSA debit card to pay the $30 copay of my new pair of glasses.
In August 2021, I rollover my old employer's HSA account into the new employer's HSA account. The amount is $1770.($1800 contribution - $30 copay spending)

I searched online. It seems I need to fill form 8889

form 8889 line 14a Total distributions you received in 2021 from all HSAs, I plan to enter $1770 rollover + $470 refund + $30 spending.
line 14b Distributions included on line 14a that you rolled over to another HSA. Also include any excess contributions (and the earnings on those excess contributions) included on line 14a that were withdrawn by the due date of your return. I plan to enter $1770 rollover + $470 refund.
line 14c = line 14a - line 14b, $30 spending.
line 15 qualified medical expense, $30 spending.
line 16 Taxable HSA distributions. Subtract line 15 from line 14c, $0.

I do not need to pay tax on form 8889.

I still need to pay the federal, state, social security, and medicare tax for this $470 refund. I plan to report this $470 refund as miscellaneous income on form 1040 schedule 1 line 8e.

That is all I need to do.

Whether my understand is correct?
Thank you very much!

[BillM223]

No, you do not need a new W-2. Instead, what will happen is when you enter your two W-2s with their code G amounts in box 12 (the contributions to your HSAs), TurboTax will add them together to make $4,070.

When you tell TurboTax that you were covered by a Self-only HDHP all year (it does not matter if you changed policies when you changed jobs, so long as they were both HDHP), TurboTax will calculate your annual HSA contribution limit to be 3,600, as you already expect.

Then TurboTax will declare that you have excess contributions of 470 and ask you if you want to withdraw them before April 18th. Since you have already withdrawn it, you will answer "yes".

As soon as TurboTax recognizes that you have made excess contributions, it will add any employer contributions (the ones with code W in box 12(s)) to line 8 of Schedule 1 as Other Income.

This means that you should NOT add this amount as miscellaneous income, because it's already been done (go look at Sch 1, line 8 to see what I mean).

You won't have to pay Social Security tax or Medicare tax on this 470 - the 1040 doesn't have a mechanism to collect it.

So you have probably already done what you need to do.