Thanks @rjs and @maglib. One more question: Since our beloved NJ taxes any growth in HSA accounts, how to properly report dividends earned in my HSA? The Form 1099-DIV issued by Fidelity doesn’t include dividends earned in my HSA account because they aren’t taxed by the IRS. Here's what I did;
After finishing Federal return I started the State return and Turbo transferred all the information from the federal return and walked me through step-by-step for filling out the state return. On the screen “dividend income”, all dividends reported on federal return were listed. I manually added HSA dividends by adding Payer’s name as “Dividends from HSA account at Fidelity” and "Net Dividend income” as “$500”.
On the final printout, the total amount of dividends (line 17) is $500 greater than shown on the Federal form meaning that Turbo correctly added HSA dividends. However, on Schedule B printed with the State packet, the amount of dividends shown is exactly as federal i.e., manually addedHSA dividends are not shown. I wonder why turbo tax is not showing manually entered dividends on Schedule B, and how to fix this issue. Thanks for your help.
