Medical expenses reduced by HSA Federal but not state

[smitchells]

California does not recognize the HSA contribution deduction, therefore when you itemize medical expenses on a Calif return they are not reduced by HSA distributions.   I moved to Oregon a year ago.  None of my HSA contributions were ever deducted on an Oregon tax return.  TurboTax is reducing my medical expenses on the Oregon Schedule A by my HSA distribution amount.  However, since I never deducted the contributions on an Oregon return (never received a tax deduction for HSA contributions on an Oregon return), shouldn't I be able to deduct the full amount of my medical expenses (not reduced by HSA distribution) on my Oregon return?

[MaryK4]

Both California and Oregon use the federal AGI as the base of the return.  This is why you must make the adjustment on the California return for the HSA contributions and then again on any medical deductions paid with HSA funds.  Oregon follows the federal treatment, so you do take the deduction on the Oregon state return, so no adjustment to medical expenses is needed.