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New Member
posted Mar 1, 2025 4:52:34 PM

Should the state HSA contribution separate the employer contribution from the combined employer and employee contributions on my 1099-SA?

The state tax return shows the combined value however the taxable portion should only include the employer contribution per the help assistance.

0 4 1777
4 Replies
Expert Alumni
Mar 1, 2025 5:47:56 PM

Since the federal return reports the amounts combined, and the states do not all tax HSAs the same way, this will be a state-specific input.  Can you clarify what state you are preparing, @toddsbrown1?

New Member
Mar 1, 2025 7:00:59 PM

Thank you for reviewing this. I am in California. 
I did find that the IRS uses the “employer contribution” terminology even though it means both employer contribution and my payroll pre tax contribution. That would explain why TurboTax uses the total amount. 

Expert Alumni
Mar 1, 2025 7:22:38 PM

Unfortunately, California does not recognize HSAs and the contributions (yours and your employers) are taxable. "Employer contribution" as you found for the IRS, means the amount that was remitted via your employer and has already been excluded from your income, and the same language is used for CA. See instructions for Form 540.

New Member
Mar 1, 2025 8:25:43 PM

Thank you!