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February 9, 2024
Question

CA taxation of employer vs. employee contributions

  • February 9, 2024
  • 1 reply
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While HSA contributions are tax exempt at the federal level, California requires employer HSA contributions to be treated as taxable income.

 

But when I do my state filing with TurboTax, it includes BOTH my employer and employee contributions towards this number.  I don't think this is correct.  How can I adjust that number so that only the employer contributions are being taxed?

1 reply

February 9, 2024

Box 12 code W – Employer contributions (including amounts the employee elected to contribute using a Section 125 cafeteria plan) to your health savings account (HSA). (Not included in Box 1, 3, or 5.) Report on Form 8889, Health Savings Accounts (HSAs).

 

  1. Open your CA return.
  2. Continue to the screen About Your HSA Contributions.
  3. In the box next to HSA contribution, adjust the amount if needed.
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