I was a partial resident for both California and Georgia in 2022. When filling out the CA state return and am allocating income between California and other states, I arrive at a screen that says "Tell us about your California Income" and "Total adjusted income from W-2s". It looks like that total is the sum of my two W-2s (I have one from Georgia and one from California), and also including the payroll HSA contribution. If I subtracted my GA W2 amount from this sum, I would get California attributable income. Looks like it adds up so far.
My question is this. In addition to payroll HSA, I also had a individual/direct HSA contribution that was not through my employer (and not reported on box 12W of the W2). I do not see anywhere that my *direct/individual* contribution to HSA was added back to CA income. I am not sure if this was done behind the scenes or if it's a manual adjustment I need to make. Do I need to take any further action in this case, or is the amount automatically included?
The reason I ask is because, as a partial resident throughout the year, though I made the direct contribution while living in CA, it was not actually all sourced through CA income because I pulled the direct contribution from my prior savings account. So I would like to be able to allocate a portion of the HSA direct contribution to Georgia to reduce Georgia income/taxes (which I am able to do on the Georgia form...) and then reduce the California HSA Addback by that amount. This would have the effect of reducing my tax liability in both states, and I feel like it would still accurately reflect where the income was sourced from (prior GA income vs. CA income). How should I accomplish this? Is it possible?
