California does not recognize the HSA contribution deduction, therefore when you itemize medical expenses on a Calif return they are not reduced by HSA distributions. I moved to Oregon a year ago. None of my HSA contributions were ever deducted on an Oregon tax return. TurboTax is reducing my medical expenses on the Oregon Schedule A by my HSA distribution amount. However, since I never deducted the contributions on an Oregon return (never received a tax deduction for HSA contributions on an Oregon return), shouldn't I be able to deduct the full amount of my medical expenses (not reduced by HSA distribution) on my Oregon return?
