My understanding is that any cafeteria plan deductions for my HSA are not taxable in CA, but that any employer provided HSA contributions are taxable. Unfortunately, TurboTax is picking up the full amount of W2 box 12, code W (employer and employee contributions) and making it taxable on my state return. There doesn't appear to be a way to edit the amount just for my CA return. I'd really rather not pay any extra taxes that I don't have to.
