My employer contributes $2k into my HSA. I also contribute to the HSA through payroll deductions. The CA state tax is calculated on W-2 box 12 code W which includes employer and employee contributions. Does the employee (my) contribution get backed out so only $2k is taxed?
From the help/guidance in turbotax;
What should I know about contributions to a Health Savings Account (HSA)?
If your employer contributed money to an HSA on your behalf, that contribution is not taxed by the federal government. However, California considers it taxable income.
W: Company contributions (including employee contributions through a cafeteria plan) to an employee's health savings account (HSA)
