HSA Withdraw to prevent excess taxes

To begin, I understand I will not be getting legal, usable tax advice. I don’t mind researching an issue on my own, but this problem seems to be pretty unique and I’ve hit a road block working alone on the issue.

 

While working on mine and my wife’s taxes, I was told that the $500 reported in my wife’s HSA needed to be withdrawn or we would have to pay additional taxes. I contacted the HSA and the person on the phone said they had had other people calling in about the same message from other tax programs, but that they weren’t aware of any such tax issue. They did say that if I were to withdraw from the HSA for non-medical purchases, I would definitely have to pay taxes on that.

 

My wife is allowed to roll her HSA contributions over to the next year, so there doesn’t seem to be any penalty for leaving the money alone, save this tax issue. I cannot find any reference to why this extra tax is being asked of me.

 

Am I missing something simple? Neither my wife nor I have had an HSA before, so I don’t know standard procedures.

 

Other facts:

-The entirety of the contribution was made pre-tax from my wife’s own paycheck.

-The tax program I’m using is TurboTax online.

-We are filing Joint Married.

-I do not have an HSA.

 

Edit: Sorry for formatting issues, I can't seem to get items at the bottom to show up as a list.