@Tax-Cleric
The reason that both the employer contributions to your HSA and your contributions through payroll deduction are both called the "employer contribution" is because they are both treated in the same way. That is, the code W amount (which includes both) is removed from Wages in Box 1 before the W-2 is printed. This is why there is no line on your return where this deduction appears - because it was never in your income in the first place.
If you make a contribution directly to your HSA (not through your employer), this amount appears on line 13 on Schedule 1 (1040).
@mkochins1
California does not allow any HSA contributions to be deducted from income, so, yes, both are taxable in CA.
@Debby92886
Yes, as I noted above, California does not allow contributions to HSAs. Since the amount with code W has been removed from income on the federal return, it has to be added back to income in California.
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