On your CA return, yes, you have to enter the interest, dividends, and capital gains earned by your HSA as if it were a regular investment account.
Box 5 on the 5498-SA is the fair market value of you HSA, which is usually not the same as your earnings, unless you withdrew all contributions from your HSA during the year, and the earnings are all that is left.
What you should do is ask your HSA custodian for a report on what the HSA earned over the year (this is not the same as "earnings on excess contributions"). The first line phone support person will very likely have no idea of what you are talking about, since only California and New Jersey still treat HSAs this way. So be persistent and ask for a supervisor or someone who is familiar with how CA and NJ do things.
Note: CA taxes all capital gains (short term and long term) the same way, so all you need is the total number for capital gains.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
