thank you, you guys and gals are very knowledgeable. Can I just confirm so that I have a correct understanding?
For me, box 16 is above federally reported wages by the amount of 12d - W HSA contribution. This means my employer already withheld taxes for California for base wage and included HSA in withholding
Say federal wage $100, HSA $10. Box 1 - $100, Box 12.d W - 10. Box 16 -$110
Did software add $110 and $10 = $120, or did it calculate based on just $110?
a). If it used $120, then I need to do a manual adjustment and adjust software from double taxing HSA
b). If it smartly used federal wage and 12.d W, then it calculated based on $110, and adding adjustment will cause me to underpay California Tax liability.
Which one? a or b?
