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March 20, 2020
Question

How do I allocate a lump sum HSA contribution to my state income when I earned income in more than one state (one state taxes HSA contributions and the other does not)?

  • March 20, 2020
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1 reply

March 20, 2020

In the absence of state law to the contrary (since I don't know which states we are talking about), a lump sum HSA contribution (I take this to mean a single contributions on a given date) should belong to the state in which you had your domicile on that date.

 

If the contributions were made through an employer, then the HSA contribution would follow the state source income, but a one-time contribution not tied to any specific income belongs to the state you were domiciled in on that date.

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