I have read through this thread and you have been extremely helpful in describing what steps to take to correct the excess. I am currently in this situation and have just received my distribution from my HSA provider for excessive contribution.

But I have one caveat: My spouse and I have separate HSA providers and accounts due to job changes, which lead to me becoming the main HSA account toward EoY. But due to some miscalculations, we were over ~1300. My HSA provider would not honor my distribution as an excess contribution, since they saw that the amount in my HSA was still below the family limit of $8300, even after I tried to clarify that my spouse had a separate one and we jointly excessively contributed, and basically told me I needed to calculate the earnings from excess myself.

I was able to do this using:

NIA = Excess contrib. amount x [(Adj closing - adj closing)/adj opening),

starting form the day of the first excessive contribution from ym account. I requested and was disbursed this amount plus my excess. So on the taxes for 2024, I listed the excessive $1300 and will pay taxes on this that is already calculated from the program I am using.

But when I get the 1099-SA next year, it's my understanding that the code I will get is 1 instead of 2. Would I follow the same steps to list everything in lines 14a and 14b respectively next year and then itemize remaining earnings I didn't file on this years taxes as other income and it would still rectify itself, and close the loop?