Hi,
I wanted to provide some updates for those who are either affected by a similar tax situation or for those trying to fix the issue:
1. Pennsylvania does allow for the deduction of personal HSA contributions. You can verify this directly on the PA Department of Revenue's website here: PA Personal Income Tax Guide - Deductions and Credits.
2. Regarding the software issue, I have already double-checked and verified the following to a T:
HDHP Eligibility Months: I confirmed in the federal return that the months of eligibility for the HDHP plan perfectly coincide with my Ohio residency dates, and NOT my Pennsylvania residency dates.
Residency Dates: I verified that the partial-year residency dates are entered correctly in both the individual PA and OH state tax returns.
Despite ensuring all of this information is accurate, the TurboTax software allows me to edit the allocable HSA contributions on the Ohio state return, but completely locks the field on the Pennsylvania state return.
Given that PA allows this deduction, this appears to be a glitch in the software that incorrectly restricts PA part-year residents from editing their allocable HSA contributions. Please escalate this issue to the software development team so they can build this out and fix it for the PA state taxes. I imagine this limitation will negatively affect other part-year PA residents like myself who personally contribute to an HSA.
