Deductions & credits

Since I received conflicting information from TurboTax and an outside tax accountant regarding the California taxation of earnings in a Health Savings Account, I initiated an online chat with the California Franchise Tax Board.  They do still tax earnings (dividends and interest) on a HSA.  They do not tax unrealized gains.  I'm not sure why you thought this taxation was cancelled by 2022 legislation in California, but it was not.  Again, California does NOT conform to the Feds when it comes to the tax treatment of earnings in a HSA. Interest and dividends are taxed.  Unrealized gains are not.