Thank you @LindaS5247
1. If I excessively contributed half of 2023 HSA limit (so, $3,850/2 = $1925) because I did not realize that I had non-high deductible student insurance still active for half of 2023, how do I calculate what amount of interest I must withdraw too?
2. I also requested to withdraw my full 2022 contribution when I did my 2022 taxes in 2023 before the tax extension deadline.
(I started working after college in late 2022 and did not realize that I still had another insurance in 2022 and half of 2023 - so this affected two years of my taxes: FY2022 and FY2023).
Fidelity issued paper check in late 2023 because they failed to direct deposit the 2022 excess contribution removal.
I did not realize it because I was abroad frequently in 2023-2024. In April 2024 they redeposited the check back to HSA. I noticed it in October 2024 and had them reissue the check on October 15, 2024, which posted on Oct 16 2024.
It may have earned tiny amount of interest after getting redeposited in April 2024 (I kept the balance in cash, but even cash earns something like 2% interest in Fidelity HSA).
Do I need to claim this interest as income? If so, how do I claim it? How do I calculate it?
I don't think I can claim it as excess contrinution withdrawal because I already did that in 2023 when I was doing my 2022 taxes. The money entered back in April 2024 to the account due to Fidelity's issueing a check instead of direct deposit and my not being able to deposit it on time because I was abroad. This makes it a bit weird situation.
