Has anyone ever done this through TurboTax? I have a similar issue but from 2023 and I'm wondering if I can just fix it when I file my taxes this year.

I had almost the exact same situation with a 2019 HSA excess contribution that I didn't catch until 2022. The key is being persistent with your HSA provider - don't accept "we can't do that" as an answer. Here's what worked for me: I called Optum (same provider as you) and specifically asked for their "Tax Compliance Department" rather than regular customer service. The regular reps often don't understand the rules for correcting prior-year excess contributions. When I got through to tax compliance, they knew exactly what I was talking about and processed my excess contribution removal within a week. You'll need to specify on the form that this is for tax year 2020, and make sure you request the withdrawal of just the excess amount ($800 in your case) - don't include any earnings on that amount unless you want to pay taxes on those earnings. The good news is you won't need to amend any prior returns, and you'll stop paying that 6% penalty going forward. One tip: if they still give you pushback, mention IRS Revenue Ruling 2004-41 which specifically addresses corrections of excess HSA contributions from prior years. That usually gets their attention!

Don't forget you can also spread the income from a qualified disaster distribution over 3 years! So if you qualify for the disaster exception, you could include just 1/3 of the distribution in your income this year, and the rest in the next two years. Helps with the tax hit.

The 3-year income spreading option is still available for qualified disaster distributions, not just COVID-related ones! This applies to distributions from retirement plans due to federally declared disasters. You can elect to include the distribution in income ratably over the 3-year period beginning with the year of distribution. To do this, you'll need to file Form 8915-F (Qualified Disaster Retirement Plan Distributions and Repayments) along with your return. This form lets you specify how much of the distribution to include in each year's income. Since you withdrew $13,500, you could potentially include $4,500 in income each year for three years instead of taking the full tax hit this year. Just make sure your hurricane situation qualifies as a federally declared disaster in your area before electing this option. The IRS has specific requirements about timing and geographic areas that qualify.

Has anyone actually gotten an IRS penalty for HSA over-contributions before? I'm wondering how strict they are about this stuff. I think I might have over-contributed last year but never fixed it and haven't heard anything.

I went through something very similar last year! You're absolutely right that you can still contribute that $150 to get back to your maximum allowable contribution for 2024. As others mentioned, you have until April 15th, 2025 to make 2024 HSA contributions. One thing I'd add is to keep really good records of all these transactions. I created a simple spreadsheet tracking: original contributions, the excess amount, withdrawal date and amount, and then the corrective contribution. This made tax filing much easier and gave me peace of mind if the IRS ever had questions. Also, don't stress too much about the "return of excess contributions" form you already filed - that was correct for the portion that was actually excess. The additional $150 you're putting back in is just you using up your remaining contribution room for 2024, which is totally separate and allowed. Just make sure when you contribute that $150 with Fidelity, you explicitly designate it as a 2024 contribution in their system. Their interface makes this pretty clear during the contribution process.

Has anyone tried TaxHawk? Just discovered it and wondering if it handles stock sales too without charging?

Just wanted to add another option that's been working great for me - TaxAct through the IRS Free File program. I have a similar situation with W-2 and stock sales, and it handled everything completely free (including Schedule D for capital gains). The key thing I learned is that you MUST go through irs.gov/freefile to access the truly free versions. If you go directly to TaxAct's website, they'll try to charge you for the same forms that are free through the IRS portal. One tip for stock sales - make sure you have your cost basis information ready from your brokerage. The software will walk you through entering each transaction, but having your 1099-B and records organized beforehand makes the process much smoother. I was able to complete my entire return in about an hour, and got my refund in less than 3 weeks!

Having dealt with a similar situation between Texas and California, I can't stress enough how important it is to establish clear, unambiguous residency rather than cutting it close. The 10-day shortage you mentioned puts you in exactly the kind of gray area that can trigger additional scrutiny. One thing I learned during my residency determination process is that consistency across all your records matters enormously. Beyond just counting days, make sure your voter registration, driver's license, bank statements, insurance policies, and even subscription services all point to your owned home as your primary address. Any inconsistencies can raise red flags. For your vacation day question - the general rule is that vacation days count toward your established "home base" at the time of travel. So if your primary residence was the rental when you took the vacation, those days would typically count toward the rental location, not the owned home. Given the potential city tax savings you're looking at, the financial stakes are probably high enough to justify making those extra trips to clearly hit the day count. The cost and stress of an audit, even if you ultimately prevail, usually far exceeds the inconvenience of a few additional trips. Better to have an iron-clad case than one that requires explaining or defending.

I went through a very similar situation last year with properties in Nevada and California. The advice everyone's given here is spot-on - being 10 days short of the threshold is exactly the kind of situation that can invite scrutiny. One thing I'd add that hasn't been mentioned much is to pay attention to your utilities usage patterns at both locations. During my residency review, they looked at electricity and gas bills to see which property showed consistent daily usage versus sporadic usage. High utility bills at your owned home during winter months (heating) or summer months (AC) can be strong evidence that it's where you actually live day-to-day. Also, if you have any recurring services like lawn care, house cleaning, or regular maintenance at your owned home, keep those records too. These show ongoing commitment to maintaining the property as your primary residence rather than just a place you occasionally visit. The fact that you already have your driver's license and voter registration at the owned home is great - that shows intent to establish residency there. Combined with making those extra trips to hit the day count clearly, you should be in a much stronger position. The peace of mind is definitely worth the inconvenience of a few additional trips.