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Level 3
February 10, 2021
Question

HSA ACCOUNT INTEREST INCOME NOT TAXABLE FOR FED

  • February 10, 2021
  • 1 reply
  • 21 views

On screen 11 Interest Income, under the heading OTHER, there is a box where you can check "nontaxable to federal {CA}."   I want to use it to enter HSA interest income which is nontaxable to federal but taxable to CA.  But on form 540 schedule CA line 2, "WKS" will list the adjustment as "Interest Income (Reported on Parent's Federal Return)".  Any suggestion where I can properly enter HSA interest income not taxable for federal? Thank you.

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1 reply

George4Tacks
Level 15
February 10, 2021

Screen 11 enter HSA interest as description, put total in Total Municipal Bonds and leave the In-State Municipal Bonds empty.

Go to 540 Schedule CA to confirm the adjustment as an addition.

Answers are easy. Questions are hard!
lilhk3Author
Level 3
February 10, 2021

thanks, I guess that is the best alternative available. 

George4Tacks
Level 15
February 10, 2021

You may like this better - Screen 32 > Last two entries

Answers are easy. Questions are hard!