cathiexu
Returning Member

Removed HSA Excess Contribution, but how does it reflect on CA tax

Hi, 

 

I found I had excess HSA contribution in tax year 2022 by $200. I contacted my HSA provider to remove the excess return and earnings in April 2023. From searching online,  I learnt that:

 

Turbotax will know I had excess contribution, and since I removed the excess part,  Turbotax will report the $200 as other income on 1040.

 

However, in state like CA, HSA contribution is not deductible, so basically any my HSA contribution has already been included as taxable income for CA tax purpose. Now as I included the excess contribution $200 as other income on 1040,  which means I further pay additional tax on $200 part to CA. 

 

How does Turbortax deal with excess HSA contribution removal for state like CA? Thanks!