Hi there,
I'm running into an issue when filing for New York (NY) state tax as a part-year resident with HSA contribution counted as Other Income.
Context:
I contributed to my HSA in 2018 and the beginning of 2019 while I lived in California (CA). Then I moved to New York (NY) and stopped contributing, instead, I took a distribution for medical expenses.
I have two W-2s with the following breakdown:
- Federal and CA state copy list HSA contribution in Box 12b as W $660
- My NY state copy does not list HSA
Info in TurboTax:
Federal - I entered my W2 federal with HSA as stated in Box 12b. It shows my total income. Under Federal -> Wages & Income it has $885 (distribution I took out) next to 1099-SA, HSA, MSA. When I clicked into 1099-SA, HSA, MSA, it shows
HSA Summary
Deduction $0
Total distributions $885
Taxable distributions $0
Taxable earnings on excess contributions $0
Tax-free employer contributions $660
Excess employer contributions withdrawn $0
I have no issue filing federal tax return.
California part-year resident - There is this message
"About your HSA contribution
We’ve calculated an addition to your California income in the amount of $660 for contributions made to your HSA by your employer. This is the portion of the contritions that was not included in income on your federal return. California does not allow you to exclude employer contributions from income. The amount can generally be found on Form W-2, Box 12, but could also be reported separately."
Next page shows:
"Here's the income that California handles differently...
HSA Contributions $660". When it asked about income, I split my income according to the Wages, Tips, and Compensation listed in my W2.
Again, I have issues filing my California tax return.
New York (NY) part-year resident - I entered my income as it's stated in W2 NY State copy. No questions about HSA. Then when I try to file, I have one error to fix with the following message.
"IT-360.1 TP -- Change of City Resident Status Stmt - TP: Total Other Inc, Federal -- The amounts entered in Column A of the Line 15 - Other Income Worksheet do not agree with the total transferred from the Income Allocation Worksheet to Line 15 Column A. Above line(s) should total $0."
The form lists HSA $660 in life 15 column A as Federal Other Income and a total other income cell. This total other income cell I can modify but it shows $660.
Problem:
Please help me understand and resolve this problem. I feel I am going in circles and do not understand the error. Can someone please explain and provide a solution?
Thank you!
