DianeW777
Expert Alumni

Deductions & credits

The HSA financial institution should be calculating the interest/earnings on the amount of the distribution.  It's extremely unusual for them to expect you to do it.  They know what the earnings are and how to calculate them - believe me.  My advice would be to fill out the form and do not enter the earnings, add a note for them to insert the earnings after it has been calculated.  

 

According to our tax expert @dmertz, here is the link to calculate the earnings if you really need to. 

  • CFR 1.408-11 describes the required calculation for determining the earnings on your HSA withdrawal
    • Net Income=Contribution×(Adjusted Closing Balance−Adjusted Opening Balance)/Adjusted Opening Balance.

​​​​​​​@Bradley_C

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