I am trying to figure out which state to allocate personal contribution I made to my HSA for 2020?
There are two aspects that apply to my case -
- I was part year resident of IL and PA - roughly 6 months in each state. I earned all my income from IL.
- I was only eligible to contribute to HSA for first 3 months of 2020. All of those 3 months, I was a resident of IL. I had family coverage and so I was eligible to contribute a total of $1775 ($7100*3/12) towards my HSA in 2020.
I did not contribute the full $1775 through my paychecks as employer contribution. I contributed the remainder eligible amount as personal contribution in Jan 2021 to count towards 2020.
TurboTax is deducting the entire amount from both states - IL and PA - is that correct? If not, which state - IL or PA - should I deduct this from? And how much should I deduct from each state?
Should it be deducted from IL since I was only eligible to contribute to HSA while I was a resident of IL OR should I deduct it from PA since the actual contribution happened while I was a resident of PA?
