An HSA is a tax-deferred account, like a 401(k) or an IRA. You don't report ups and downs in tax-deferred accounts, as that is the whole point of having them.
That post has been removed, as it doesn't contain an ounce of truth. Unfortunately, the person asking was wrong and the non tax-expert didn't bother to question it. That happens, unfortunately- we have too many posts here to micromanage every response.
You get a deduction for medical expenses on your NJ return as you use the account to pay for account expenses. You don't report growth or losses with a tax-deferred account.
