When I did my sample, the HSA is not included in income on the California column. It is included on the Federal side and cannot be adjusted. I'll try to show an example:
Pretend that your TX income is 50,000 and your CA income is 50,000, and you made an HSA contribution for 5,000 while working in TX. California will calculate tax, not on 100,000, but on 105,000. The California percentage of tax is 50000/105000 or 47.61%. For arguments sake, let's say that if the HSA were not factored in, CA tax on 100,000 is 4000 and on 105,000 (with the HSA, higher tax bracket), it is $4250. The "non" HSA amount would produce CA tax of $2000 (on 50% of income against the 100,000 total), whereas with the HSA factored in, the tax is $2023 (47.61% of the 105,000), whic is $23 more tax when the HSA is factored in. Even though the HSA is not included in the California income in either case, the amount still moves because of how CA does their tax calculation. I agree if it sounds a bit convoluted, but I hope you can see this on the return. You should make sure that you follow the steps above to ensure the CA income reported is excluding the HSA from the CA column, but it will not be excluded from the Federal column.
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