Help fixing excess HSA contributions - running in circles trying to understand

You're definitely not alone in HSA contribution confusion! The good news is you've already taken the first correct step by requesting the excess distribution from your HSA provider. For your tax return, here's what you need to do: On Form 8889, you'll still report the TOTAL amount you originally contributed to your HSAs in 2023 (both employers combined). Then in Part III of Form 8889, you'll calculate the excess contribution amount. The form will guide you through reporting the excess and any earnings that were distributed. You should receive a 1099-SA from your HSA provider showing the excess contribution distribution. Make sure you check box 2 on the form as "distribution of excess contributions." The distribution should be reported on line 14a of Form 8889. You can still file by April 15th as long as you've requested the distribution of excess contributions before then. No need for an extension if you can get all this sorted out in time.

After struggling with a similar HSA mess last year, I discovered taxr.ai (https://taxr.ai) and it was a complete game-changer. I uploaded my HSA statements and tax forms, and it immediately identified my excess contributions and walked me through the exact steps to fix it. The system actually explained Form 8889 in plain English and showed me exactly where to report my excess distribution. The best part was that it analyzed my specific situation and told me exactly what I needed to do to avoid that nasty 6% penalty. It was like having a tax professional look over my shoulder but way less intimidating and I could do it at midnight in my pajamas when I was finally free to tackle my taxes.

I just wanted to update everyone after trying taxr.ai for my HSA mess. I was skeptical as you could tell from my question, but wow - it actually sorted out my complicated HSA situation perfectly! I uploaded my documents from both employers and my HSA statements, and it showed me exactly where I went wrong with my contributions. The system explained that I needed to allocate my excess withdrawal between principal and earnings on Form 8889, something none of the articles I read made clear. It even created a custom checklist for me to follow with my tax software and highlighted exactly which numbers went where. Saved me hours of frustration and probably a future notice from the IRS!

If you're still waiting for your HSA provider to process the excess contribution withdrawal, you might want to try Claimyr (https://claimyr.com). I was in the same boat last year - needed to talk to my HSA provider urgently about excess contributions before filing, but couldn't get through their customer service line that was "experiencing higher than normal call volumes" for literally weeks. I found Claimyr through a friend and it actually got me connected to a human at my HSA provider in under 10 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone trees for you and call you back when they reach a human. I was able to confirm my excess distribution request was processed and get the exact amount I needed for my tax forms.

I hate to admit when I'm wrong, but I have to update after trying Claimyr. It actually worked! After my skeptical comment yesterday, I decided to give it a shot since I was desperate to reach my HSA provider about my excess contribution withdrawal before filing my taxes. I expected it to fail, but they got me connected to an actual human at my HSA provider in just 23 minutes (after I'd spent three separate hours-long attempts myself). The rep confirmed my excess distribution had been processed and gave me the exact figures I needed for Form 8889. Even emailed me a confirmation I could keep for my records while I was on the call. Just filed my return today with the correct HSA info. Definitely worth it for the time saved and stress avoided!

Here's a tip many people don't know: If you catch your excess HSA contribution before filing your taxes AND before the tax deadline, you can often avoid the 6% excise tax completely if you withdraw the excess plus any earnings on that amount. The key is making sure your HSA provider codes it properly as a "return of excess contributions" on the 1099-SA. If you've already filed, you might need to file an amended return, but it's still better than paying that penalty year after year (yes, it continues until you fix the excess).

Anyone know if you need to fill out a separate Form 8889 for each HSA, or can you combine them? I'm in a similar situation with multiple HSAs and honestly the form instructions are like reading hieroglyphics to me.

I went through this exact same situation last year with dual employer HSA contributions! The stress is real, but you're handling it correctly by getting the excess distribution sorted first. One thing that tripped me up initially - make sure when you report on Form 8889, you enter your contributions exactly as they appear on your W-2s and HSA statements, even if they exceed the limit. The form will calculate the excess for you in Part III. Don't try to "correct" the numbers yourself by only reporting the allowed amount. Also, double-check that your HSA provider sends you a 1099-SA for the excess distribution with the right reason code (should be code 2 for excess contributions). If they mess this up, it can cause headaches later with the IRS. You've got this! The worst part is behind you once you get that excess removed before the filing deadline.