@RobertB4444 , California does not recognize HSAs. The dividend and capital gains distributions paid by funds held in the HSA have to be reported on the California tax return as additions to income. The amount that needs to be added is the amount that would have been added to federal income had the funds been in a regular brokerage account instead.
See this thread:
https://ttlc.intuit.com/community/state-taxes/discussion/for-my-california-return-how-do-i-handle-hs...
