Hi, I are working on my 2024 tax return (both federal and California) using TurboTax Premier 2024 desktop version. I had received some dividends from money market funds in my HSA account for the year of 2024. Per my understanding, there is no need to report such dividends for federal tax return as HSA contribution and gains are tax free; however, I need to report that for California state tax return. My questions:
1. Where do I report received dividends for a HSA account in TurboTax?
2. I hold MMF which invested in U.S. government securities, and Fidelity (my broker for the HSA account) said part of the dividends are tax-exempt for California. For example, if a MMF had 97% income from U.S. government security, then 97% would be CA tax-exempt. That means, only 3% of the dividends need to be considered for California tax. How do I report/adjust that?
