I need help entering HSA info for California (Health Savings Account)

[ss-mendo-munny]

TurboTax has three boxes for entry:

1) Interest Earned from HSA

2) Dividends earned from HSA

3) Net Capital Gain or Loss from HSA

My Statement has the following:

A) Short Term Capital Gain Dividends

B) Qualified Inc Dividends

C) Long Term Capital Gain Dividends

Which Letters go in which box?

I'm confused because the LT and ST Capital gains are Dividends, do they go in both 2 and 3?

[BillM223 · Accepted solution]

You will need to contact the institution that generated that statement, since we in the Community can't know what they intended. Is "Long Term Capital Gain Dividends" a dividend or a real capital gain?

But in a sense, it does not matter. California taxes all capital gains (short-term and long-term) as ordinary income. In addition, California taxes all dividends (qualified or not) as ordinary income.

So no matter how you enter them, your California tax return will have the correct numbers.

[ss-mendo-munny]

thank you -- if California doesn't care what it is, I don't either