I don't quite follow your latest response. On page 20 of the instructions for Massachusetts Form 1 it indicates that line 2 of Schedule X should include the taxable portion of the amount received from an IRA. Turbotax did not do this correctly as it also included the HFD which is not taxable. As a result I had to override Turbotax to get to the correct taxable amount of my IRA distribution. On page 21 of the instructions for Massachusetts Form 1 it states that the amount for line 8 of Schedule Y needs to come from U.S. Federal Form 1040, Schedule 1, Line 13. This amount comes from Federal Form 8889 which backs out the HFD to get to the total HSA deduction. Turbotax did all of this part correctly. So its seems to me Turbotax does still need to be fixed because it is overstating the amount of taxable income in this situation unless the user does an override. Perhaps you were looking at different pages in the instructions that conflict with the pages I referenced above?
