I put HSA in federal from w2, but state CA needs to report tax on HSA. I found out I have a 5498-sa. I want to ask in my tax return, is it including? what I should do?

[chengwei_ou]

I did not put anything on state part. is turboxtax will auto find out, and transfer HSA to state tax? or I need to manually put HSA on state tax part?

[BillM223]

You do not enter form 5498-SA into TurboTax. It is an informational form that you put in your tax files for archival.

TurboTax handles most parts of HSA processing automatically for full-year CA residents, however, for part-year residents there are often manual adjustments that have to be made.

Remember that CA considers an HSA to be a regular investment account, so there are additional questions in the CA interview asking about the income earned by the HSA - which means that you will probably have to contact the HSA custodian and tell them that you are a CA resident and need to know what types of income the HSA would have reported if it were a regular investment account. Ask to speak to a supervisor if the person that answers doesn't know what you are talking about.

[chengwei_ou]

Thanks for the reply,

Im sorry, I forgot some information:

I already submit the tax form to IRS. I also got federal return on my bank this week, but I did not see the state return. what should I do?

do I need to file additional form? Will the IRS have a interview to me?

I download the tax return pdf. where I can check if I missing the HSA report to IRS?

[ErnieS0]

States usually tax longer to process tax returns and send refunds because they have a smaller tax department than the IRS.

You can check the status of your California return at Where’s my refund?

Form 5498-A is used to report health savings account contributions. Form 1099-SA is used to report spending.

If you did not take money out of your HSA (and did not receive Form 1099-SA) there is nothing to report on your federal return. 

Your HSA contribution will be listed in Box 12 under Code W on your W-2.

As for California, wait until you receive your state refund before doing anything.

[chengwei_ou]

Thank you

is that you mean: If I received the state refund on my bank, I will not have trouble in state, and my case is success in IRS. 

how will their program go?

1. they give ur refund first ---> check you form if not correct. ---> ask you pay back

2. check you form if not correct ---> ask you pay (or ask you submit additional info) ---> give ur the corrected refund

but a little bit thing you may misunderstanding.

I have question about state, not federal. I believe turbotax done federal very well.

Im not trying to look for the HSA in W2. I try to look for the one in 2022_TaxReturn.pdf which I downloaded after I file my tax form.

at the end, turbotax will summarize all information become this 2022_TaxReturn.pdf and submit it to IRS, right?

if so,  I try to see if in pdf already include my HSA(I should pay tax to state)

I search for HSA in the pdf:

1. page 6: Other Taxes (continued)

2. page 17: form-8889

3. page 34:  California Wage, IRA and Pension Adjustments

4. page 40:  SCHEDULE 2 Other Taxes (continued)

5. page 51:  form-8889 (this looks like the same as page 17)

[BillM223]

The process of the IRS is a bit more complicated than that.

When you e-file your federal return, the IRS performs a quick check on certain things (like are there simple arithmetic errors?), and if nothing is found, your return is "accepted".

In the next few weeks, then IRS performs other checks, and if it finds a problem, the IRS sends you a letter. Then over the next year or so, the IRS does more check and if it finds a problem, they send you a letter, typically changing your return and asking you if you will accept the change.

On the whole, the IRS is mandated by Congress to get your refund to you as quickly as possible, and then the IRS goes looking for problems and errors.

Does that answer your first question?

As for HSA reporting on your California return, the contributions to the HSA should be handled automatically by TurboTax, as I noted before. However, you should have seen questions in the interview about your earnings - TurboTax cannot answer these for you automatically. Instead you must contact the HSA custodian and ask what your earnings (ordinary income and capital gains) were.

The representative on the phone will often have no idea what you are talking about because the HSA is tax-free in 48 or 50 states. So when you call, you may have to speak to a supervisor to find out any information.

Of course, since the HSA is just like any other investment account in California, it won't say "HSA" on the California return - you will just have to remember the numbers you put in and find them where the other investment earnings are.