What should I do if I used my Health Savings Account (HSA) earnings on excess contributions for medical expenses?

Any earnings on excess HSA contributions that are withdrawn before your tax deadline need to be reported in the miscellaneous income section on the Other Income screen. If you also withdrew the excess contributions associated with these earnings, you'll need to report both the excess contributions and the earnings on them in the Health Savings Account (HSA) section.

You won't get any extra tax breaks besides the usual deduction for qualified medical expenses on Schedule A paid with earnings on excess HSA contributions.

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