Potentially neither New York or Connecticut.
Contributions to HSA accounts that are distributed for medical expenses are not taxed. If your HSA contribution was made directly through your employer, that information is captured on your W-2 in Box 12, Code W. This amount includes employer contributions.
Once you reach age 65, you can use HSA funds to pay for Medicare. These would be considered medical expenses and would be typically tax-free. Were you told your distributions would be taxed?
Click here for steps for the 1099-SA: Where do I enter my 1099-SA?
TurboTax will automatically gather the details from your input and enter Form 8889 to report both the contributions and any distributions for 2019.
