BillM223
Expert Alumni

Get your taxes done using TurboTax

In the California interview, there is a screen that is specifically for income and capital gains from your HSA account, which, in CA, is considered to be just an ordinary investment account.

 

As for your MMF, California has a rule that if more than 50% of the fund is in tax-exempt obligations, then it is treated as 100% tax-exempt. So, in the case you specify, don't report any of the dividends for the HSA.

 

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