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keira77
Returning Member

HSA

I moved from California to Washington in the middle of the year. My employer in WA contributed to my HSA. However, California is taxing my HSA even though none of the contributions were made while I was in CA. Is there a way to modify this on turbotax?

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2 Replies

HSA

you're doing something wrong. 

you are a part-year resident of Ca and should be filing form 540-NR and schedule Ca to allocate your income. here's Ca rules (Wa does not have an income tax)

 

California taxes all income received while you resided in California and the income you received from
California sources while a nonresident.
If you file Form 540NR, use Schedule CA (540NR) column A through column D to
compute your total adjusted gross income as if you were a resident of California
for the entire year. Use column E to compute all items of total adjusted gross
income you received while a resident of California and those you received from
California sources while a nonresident.

 

keira77
Returning Member

HSA

I am using the turbo-tax step- to step questions/instructions and did fill out the 540-NR form. Turbotax does allow me to allocate income earned in CA vs other states but it pulls the HSA amount from my federal tax return and does not ask where that was earned. Is it possible CA taxes the whole HSA amount even for part-time or nonresidents?

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