How do I separate my employer and my contribution to HSA reported in W2 Box12- TT is taking the full sum as taxable for State CA

Forum|Forum|2 months ago
April 15, 2026
1 reply
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I contributed $4800 and my employer $500 to my HSA- $5300 is reported in Box12, Turbo Tax says this full sum is considered taxable income for CA- whereas only $500 of it is employer contribution- How can I fix this in TT? Thank you

TurboTax Online

dmertz

Level 15

The entire code-W amount is taxable on your California tax return. The entire amount was excluded from box 1 of your W-2 by your employer, so none of it was included in your federal AGI. Because California does not allow any contributions to an HSA to be excluded from taxable income, the entire code-W amount is required to be added to taxable income on your California tax return.

Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.