Is it necessary to report Health Savings Account interest if its greater than $10 or is the interest part of the tax savings?

[LeeM · Accepted solution]

No, it is not necessary to report it on your federal tax return. That is part of the tax savings.

Earnings from HSA accounts, such as interest and dividends from the money contributed to an HSA, are tax-exempt at the federal level. Interest or other investment income earned on the contributions are not included on your tax return.