The 2022 TurboTax PA State form is taking HSA employer contributions from box 12, and applying it as interest income on PA-40. This is true for amounts up to and even below the federal maximum. Consequently, TurboTax calculates taxes as being owed for this "interest income."
PA tax law does not tax contributions/distributions that are not subject to federal income tax.
The only way I can currently remove the "interest income" from TurboTax PA-40 is by making a manual adjustment.
Can you please fix this error?
