Could Turbo Tax be behind the times? I found a document by State of California's Franchise Tax Board dated January 3, 2022, titled "Health Savings Account Deduction Conformity" - has the bill been passed so that HSA earnings are not taxed, and the QHFD is not taxed and the direct IRA to HSA distributions is also not deductible like the Federal Treatment.
So, if the bill is not passed yet, then how do I do the Turbo Tax worksheet - simply leave the QHFD amount in the Additions column and move on? I could not wrap my head around the TurboTax instructions as the single 1099-R is a composite of the 3 separate distributions with fed and state withholdings accurately summed. If the QHFD streamed correctly from the Fed 1040 prep on Turbo Tax, why even have me review it? I have already managed to find HSA earnings (without any REALIZED gain and loss) from brokerage statements and plugged that in while the QHFD done and needed to be crunched in CA tax-prep is regrettable. Glad it's almost one and done. So much for encouraging everyone to open HSAs, but not in CA yet?
