Can I deduct HSA contributions from my Georgia State taxes as a non-resident?

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Alright here goes...

I had contributions to an HSA outside of my W2. IE: not automatically made through employer. On the federal form 1040 Schedule 1 this appears on line 25, and then appears on line 36 Schedule 1 as the sum for adjustments. That is then taken off on 1040 Line 7 to calculate AGI. Yes, I filled out form 8889.

Alright, I am a Georgia non-resident. That requires me to fill out Form GA500 schedule 3. Line 6 is adjustments from 1040. Whether or not this can be counted in column C (applicable to my GA taxes) is the question. The instructions for the Georgia form 500 do not seem to include this as an applicable adjustment in GA, but I feel I am missing something since if you were a resident form 500 uses AGI (Line 8).

DanielV01Answer

Alumni - Intuit

What you will need to do is divide the Georgia income by the Federal Income (Schedule 3, Column C box 1 divided by Column A box 1), and then multiply that percentage by the amount of HSA deduction taken reported in box 6 of column A. These are the entire amounts of Federal adjustments that are taken against Federal income, which includes the out-of-pocket HSA contribution. This entire amount is prorated to the amount of Georgia income, if the job you worked in Georgia contributed proportionately to the HSA.

[Edited 03/25/2019: 14:53 PST]

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DanielV01Answer

Alumni - Intuit

[Edited 03/25/2019: 14:53 PST]

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camerodjAuthor

Level 2

This is not true for non-resident filing GA500 Schedule 3. That adjustment needs to find its way into column C on schedule 3 for it to be deducted from GA income. It seems like it should be allowed in column C but I can't find documentation to confirm.