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State tax filing
As you know, California considers your HSA to be a regular investment account.
As best as I can see, a conversion of class is probably nontaxable on the federal level, and so is probably not taxable on the state level.
However, the language of your transaction history gives me pause: "SALE DUE TO FUND TRANSFER" and "PURCHASE DUE TO FUND TRANSFER".
Why don't you contact your HSA support people and ask them to contact the support people in the regular investment part of their business, to ask them if this "conversion" would be taxable on the 1040 in a regular investment account.
If the answer is "no", then I would feel safe not reporting it to CA; but if the answer is "yes, it is taxable on the 1040", then I would report it to CA.
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‎April 13, 2021
1:15 PM