I contributed $2900 and my employer contributed $500 to my HSA in 2018. why does CA recognize this as $3400 of income?

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I contributed $2900 and my employer contributed $500 to my HSA in 2018. why does CA recognize this as $3400 of income?

Because they do not allow the deduction like the feds do so it is added back into income ... simple as that.

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