2022 TurboTax PA State Forms: non-taxable HSA contributions being calculated as Interest Income. Please fix.

Forum|Forum|3 years ago
January 19, 2023
1 reply
0 views

The 2022 TurboTax PA State form is taking HSA employer contributions from box 12, and applying it as interest income on PA-40. This is true for amounts up to and even below the federal maximum. Consequently, TurboTax calculates taxes as being owed for this "interest income."

PA tax law does not tax contributions/distributions that are not subject to federal income tax.

The only way I can currently remove the "interest income" from TurboTax PA-40 is by making a manual adjustment.

Can you please fix this error?

Best answer by Anonymous_

This issue will be reported. You can also contact Support if you need further assistance.

How do I contact TurboTax? (intuit.com)

Anonymous_Answer

Employee

This issue will be reported. You can also contact Support if you need further assistance.

How do I contact TurboTax? (intuit.com)

txn2024

The "HSA amount being added to the interest in PA tax" issue did not affect my 2022 tax return but I see this same issue on the 2023 Tax return for PA. Is there an update from Intuit or we need to look up this solution each year if, and when, we pay attention to the details as PA clearly will accept the payment amount?

BillM223

@txn2024

If you have federal taxable income from an HSA distribution (for example, excess employer HSA contributions), this is added to line 14 on PA Schedule PA-40 A - take look, and you'll see it's supposed to be there.

This caries to Line 2 on the PA-40 as "interest" income.

Don't blame TurboTax, it is doing exactly what the forms are asking.

Does this apply to your situation?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"