Hello, if I understand correctly interest/dividend in an Fidelity HSA account is taxable in California. I invested in FUAMX (Fidelity Intermediate Treasury Bond Index Fund) which I believe is state/local tax exempt as it invests in treasury. As per the monthly fact sheet (FUAMX - Fidelity ® Intermediate Treasury Bond Index Fund | Fidelity Investments), 99.16% is US treasure. Can someone please confirm below that my understanding is correct?
Federal Tax - I don't need to declare anything since HSA is tax exempt. Also - I did not receive any 1099 from Fidelity.
CA State Tax - Since I invested in FUAMX, do I need to make any adjustments in my state tax return for the interest received in 2024? I assume no since FUAMX consists of US treasury (99.16%).
