California does not conform to federal legislation that enacted Health Savings Accounts (HSAs) beginning January 1, 2004. Therefore, California treats HSAs as another type of investment account, so you may have had taxable HSA income for California this year. This may be what you are seeing on your California return.
See here for information from California on tax-favored plans.
See here for instructions to California Schedule CA which itemized the differences in Federal and State treatment of income and deductions. You can preview your return before filing to find out how your taxes were calculated. See here for details.
See this thread and this one for further discussion of this issue.
There have been bills introduced in the California legislature to change the treatment of HSAs, so this may change in the future.
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