My HSA Contribution increased my taxable income on my Federal return but then reversed once I completed the section. BUT on my California return I got a message that the contributions have been added back to my California income and are not deductible "California doe snot allow you to exclude employer contributions from income". This was not an employer contribution, This was an employee contribution made by me. In my opinion no different than a section 125 contribution. I have seen many of the response about the IRS fefinition. The fact that the IRS, federal, definition does not distinguish between employer and employee should not impact my California return. What do I do?
