nrodriguez1
Returning Member

How does testing period for last month rule affect state taxes?

In 2018, my wife maximized HSA contributions based on last month rule (only had HDHP from June-December). However, in January 2019 we moved for a new job from Georgia to Missouri, and for 1 month she did not have a HDHP, therefore violating testing period for last month rule. How does the additional income required to be reported on federal taxes for violating testing period affect state taxes? Should it be considered on GA 2019 return or MO 2019 return, or neither? Turbotax didn't include it as part of GA income, but seems like it should?