"I believe that's proper since California doesn't tax the HSA distribution." - True
"I seem to remember that CA also doesn't give a reduction in income for HSA contributions." - Also true
"making sure that I documented enough previous year medical expenses to exceed the account balance." - you mean expenses for 2023?
"Do I still need to perform the CA adjustment to income and add the HSA amount as an addition? " When you look closely, you will see a number of items concerning HSAs that TurboTax automatically adjusts on the CA return. By and large, you should leave these alone.
But you are referring specifically to the 1099-SA that was the distribution to close the HSA? Did you tell TurboTax that the distribution was for medical expenses or not?
Well. the amount that was for medical expenses ends up nowhere on the federal return on but is on Line 4 on Part II on Schedule CA. The amount that was not for medical expenses ends up on line 8f Schedule 1 (1040). but on Schedule CA in Part I schedule B, line 8f.
I think that whatever you did with the distribution, you should leave those alone.
"I also attempted to override line 13b to zero on the Schedule A worksheet, but TurboTax called it an error). This does appear to be a gap in functionality." - Why?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
