Investors & landlords

Because New Jersey (NJ) does not allow the HSA contribution deduction you must add the earnings to your NJ return.

• Employer contributions to HSAs are included in NJ income and employee contributions are not deductible on the NJ individual tax return. But withdrawals from HSAs for medical purposes are deductible on the NJ tax return (subject to a 2% exclusion) as medical expenses.

Add the interest, dividends and capital gains on the NJ return by following the instructions below.

1. Sign into your TurboTax account/return > Select States tab > Continue or Edit your NJ return
2. Continue until you reach 'You've Finished Your New Jersey Return' > Select Update beside Adjustments
3. Continue to the page 'Other Non-Wage Income'
4. Enter your description and amounts
5. Continue to complete your NJ return
6. See the image below.