BillM223
Expert Alumni

Deductions & credits

@lparkerjr

 

What is the issue with your California return? HSA contributions are NOT deductible in California.

 

Since HSA contributions made through the employer are removed from Wages in boxes 1, 3, and 5 on your W-2 before it is printed, this contribution has to be added back to federal income to make California state income.

 

If this is what is happening on your California, it is correct.

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