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Level 1
June 1, 2019
Question

I moved from CA in April 2018 to TX. In TX I have an HSA and no state income tax. CA wants to tax my HSA contributions that I made in TX. Please help.

  • June 1, 2019
  • 1 reply
  • 11 views
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    1 reply

    DanielV01
    Alumni - Intuit
    June 1, 2019

    California doesn't tax your HSA, but it is included to determine CA part-year tax.  California pretends that all of your income is taxable in California by California rules.  Since they do not allow a deduction for an HSA, the HSA is included in their pretend calculation.  The tax is calculated, and then prorated to the percentage of income earned while a CA resident.  Thus, your HSA is not taxed, but it is considered in your CA tax formula.

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