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melodyydunn
New Member

I was CA resident for 7 months, moved to UT. Total HSA contrib = $3,100. CA W2 = HSA $2,300; UT W2 =HSA $800. CA tax calcs $3100 taxable? Shouldn't it only take $2,300?

Despite the CA W2 form indicating my HSA was $2300, and my UT W2 forms indicates $800.  The Turbo Tax CA state program pulls the total of $3,100 as taxable, taking the total amount, while $800 was from UT that should not be taxed.

3 Replies
TerryA
Level 7

I was CA resident for 7 months, moved to UT. Total HSA contrib = $3,100. CA W2 = HSA $2,300; UT W2 =HSA $800. CA tax calcs $3100 taxable? Shouldn't it only take $2,300?

The Calif nonresident/part-year return, Form 540NR, computes your income and tax as if you were a resident the entire year, then computes a net tax rate by dividing the total tax by total taxable income. Your California-source taxable income is then multiplied by that net tax rate to determine your California tax. You can see this on Form 540NR lines 31-37.

So you do report everything but towards the end of the interview (Nonresident Adjustments) is where you allocate the California-source income which is multiplied by the net tax rate. See Form 540NR, lines 31 - 42 and Schedule CA(540NR).

In Nonresident Adjustments, for the wages income item, enter only the Calif-source amount of your wages - the 7 months worth. That will exclude all of your Utah wages, and the $800 HSA, from taxation in the Calif return.



johnsrenshaw
New Member

I was CA resident for 7 months, moved to UT. Total HSA contrib = $3,100. CA W2 = HSA $2,300; UT W2 =HSA $800. CA tax calcs $3100 taxable? Shouldn't it only take $2,300?

I do not see how it is possible to do what you are saying using turbo tax software. For I have $2000 CA income, but I opened an HSA in WA state after moving. TT is still telling me I owe CA because of HSA payments made after I moved out of CA.
TerryA
Level 7

I was CA resident for 7 months, moved to UT. Total HSA contrib = $3,100. CA W2 = HSA $2,300; UT W2 =HSA $800. CA tax calcs $3100 taxable? Shouldn't it only take $2,300?

Hi johnsrenshaw, I've attached a screen shot of a screen after the Nonresident Adjustments screen. That is where you enter the Calif-source wages. That entry $$ should not include any WA wages, just the Calif wages you earned while living there. That is the amount you will be taxed on.

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