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State tax filing
If you have federal taxable income from an HSA distribution (for example, excess employer HSA contributions), this is added to line 14 on PA Schedule PA-40 A - take look, and you'll see it's supposed to be there.
This caries to Line 2 on the PA-40 as "interest" income.
Don't blame TurboTax, it is doing exactly what the forms are asking.
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March 11, 2024
1:26 PM