BillM223
Employee Tax Expert

State tax filing

I saw it just now. And yes I have built a test case that shows that an excess HSA contribution that was withdrawn from the HSA in a timely manner shows up on the Ohio MSA Worksheet as a contribution to a medical savings account, even if you hadn't opened one. 

 

Yes, it looks like TurboTax is determined to give you a state tax deduction even if you can't use it on the federal level (i.e., the excess HSA contribution cannot be deducted on the federal return, so it is automatically contributed to an Ohio MSA).

 

I don't see anything in the state documentation that suggests one should do this.

 

Yes, in the short run, override line 1 on the lower part (Schedule of Adj Lines 6 and 45) of the Medical Wks and set it to zero. In my test, it zeroed out line 2b on Ohio IT-1040, which is what you want, right?

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