2020 return, CA state taxes and personal after tax HSA contributions.

[kenc295]

I am retired, and have a family high deductible health plan. I contributed $8100 to an HSA from my own post tax dollars (joint return, no employer). Does CA still not allow a deduction for an HSA, because this is what I'm seeing on turbo tax?

The CA FTB site is useless, constantly, referring me to a proposed bill from 2019.

[BillM223 · Accepted solution]

There was a rumor here in the Community a few weeks ago that California had passed legislating that HSAs were now deductible in CA.

Like most rumors, this was not true. This is how I responded (note that one of the posters had claimed that another major tax software vendor had already updated their software for the "change"):

***

I cannot comment on what other tax software firms do, but please know that the state of California still does not conform to federal law when it comes to HSAs. In English, this means that HSA contributions are not deductible from state income - which I confirmed with the California Franchise Tax Board a few minutes ago on their hotline for credentialed tax professionals.

You can see that there is no reference to HSAs or Health Savings Accounts in the current California booklet, as there would be if the law in California had actually changed.

I looked up AB 2348, and it was clear from the legislative history that it actually never passed. The same is true of a similar bill that was introduced this year - it hasn't passed yet, either.

So please feel confident that TurboTax is handling your return correctly.

[kenc295]

Thanks very much for clarifying this. I guess I can file today!