direct payments to your HSA reduces you ORDINARY income.
look at the Qualdiv/ cpgain report, worksheet (which I do not think is visible in the online version until after you pay the fees), the worksheet begins with taxable income on line 1, separates out the capital gains and dividends on lines 2 and 3, calclates he income tax on that portion on lines 4-21 and then comes around to calculate the ordinary tax on the remainder on line 22. Which is a long way of saying the HSA reduction is part of the Ordinary calculation.
