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Level 2
posted Jun 4, 2019 5:16:38 PM

My HSA charges a maintenance fee every month. Under California reporting/return, can I deduct this against my interest/gains or consider this a loss?

I understand that is deductible for Federal returns only if it is 2% of AGI. What about California?

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1 Best answer
Level 13
Jun 4, 2019 5:16:39 PM

Yes, you can deduct fees for your HSA in California.

As you probably know, California law considers an HSA no different than any investment account.

If you have an HSA, when you enter the State Taxes interview for California and go to Income and adjustments.

On the next screen, the amount contributed to the HSA is likely to appear at the top, as an add-back to federal income.

Then, as you go down the page, see the section headed "Investments".

On the second line ("Health Savings Account (HSA) Earnings"), you will enter and add the earnings for your HSA.

On the third line ("Investment Income Expenses"), start the interview and enter your HSA investment fees and expenses.

NOTE: as you enter each of these sections under Investments, they are moved to the top of the page and the order of the remaining items is changed,

1 Replies
Level 13
Jun 4, 2019 5:16:39 PM

Yes, you can deduct fees for your HSA in California.

As you probably know, California law considers an HSA no different than any investment account.

If you have an HSA, when you enter the State Taxes interview for California and go to Income and adjustments.

On the next screen, the amount contributed to the HSA is likely to appear at the top, as an add-back to federal income.

Then, as you go down the page, see the section headed "Investments".

On the second line ("Health Savings Account (HSA) Earnings"), you will enter and add the earnings for your HSA.

On the third line ("Investment Income Expenses"), start the interview and enter your HSA investment fees and expenses.

NOTE: as you enter each of these sections under Investments, they are moved to the top of the page and the order of the remaining items is changed,