Do I deduct HSA contributions as a Nonresident of California? 2023.

[vspede]

I'm getting conflicting google/turbotax answers on this.  I'm filing a nonresident return for California.  I spent 4 days there and my state wages is $1200.  Google is telling me that HSA contributions made by my IL employer are added back into my AGI and I owe money to California.  Turbotax (2019 answer) says nonresidents can deduct HSA contributions via "misc. adjustment screens" because contributions were made by my IL company and not subject to California income.  If I do this, I get a refund of $20 instead of owing tax.

What is correct?

[MonikaK1]

Yes, when you start a California return in TurboTax, the program will add back any HSA contributions deducted on the Federal return. 

If the HSA contributions were made in another state, as you noted, you can enter a subtraction in the California interview to restore the subtraction from Federal AGI, as was discussed in this thread.

[vspede]

As a nonresident, how come when it asks me the question about HSA contributions adjustments during my California State return, I answer 0.  But I still have to deduct it under Misc. adjustments?

[MonikaK1]

I am not sure where you are seeing this question in the California return. If the program detects an HSA contribution deduction in the Federal return, it adds the amount back to income in the California return.

[vspede]

As a nonresident, Turbotax deluxe asks me to adjust the HSA contributions if they are not from a CA company.  I put down 0.  But apparently, that question doesn't mean anything and it doesn't change anything.  As you saw above, I have to manually adjust the HSA contributions under "income/misc. adj."  

You would assume since Turbotax asks the question and you answer it correctly, it will do just that but it doesn't.  I'm actually quite pissed because it has led me to file incorrectly the past 2 years.