The message is correct. The IRS
considers any contributions made
by your employer OR made
by you
by means of a payroll deduction scheme to be "an employer's
contribution".
The rationale is that both amounts are pre-tax. This amount is found with
code "W" in box 12 on your W-2.
Since California does not allow the exclusion of HSA contributions from
state income, the amount is added back to your federal income for purposes of
the state.
The confusion is rooted in how the IRS uses the terminology,and TurboTax has
to follow that terminology.
