Tax Year Prior to 2020: Calfornia HSA Contributions
I contributed into a HSA for 2019 outside of payroll deduction. I am getting my deduction Federally adjusted upon filing. When I got to the California returns, it appears that TurboTax might have added what I contributed post tax into income on the California side. It appears that I may have added extra income when that was not the case. Is this right? How can I take that contribution out on the California side?
TurboTax is correct. Because the state of California does not recognize HSAs, your HSA contributions are not tax deductible for California state income tax.
Your HSA contribution will be deducted from your gross pay for calculating the federal tax withholdings.
It will not reduce your California state income tax withholding.
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I contributed to HSA outside of work. After I entered the HSA contribution the amount of Fed tax owed decreased, which is great. Why does the amount of California State tax owed increased by 70%?
