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Level 2
March 29, 2021
Question

Why is CA (540NR) showing HSA contributions in Part II Column E?

  • March 29, 2021
  • 1 reply
  • 10 views
Proconnect is add HSA employer contribution amount to Part II, line 1, column e. How do I fix this?
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1 reply

sjrcpa
Level 15
March 29, 2021

Why do you think it's incorrect?

The more I know the more I don’t know.
Level 2
March 29, 2021

Thank you for replying.

Column E is wages earned in California as a resident or earned in California as a nonresident. The employer contribution on a Nebraska W-2 is not California income. Line 12 of the 540NR shows total $5,200 is added to Federal adjusted gross income to calculate CA adjusted gross income, itemized deductions and total taxable income. That accounts for column C on the wage line of the schedule. Column E should a second $5,200 added to California income resulting in overstatement.

The total on Line 32 should match CA wages on Line 12, which is $423. Instead Line 32, is populated with the additional $5,200 from the Sch CA (540NR) that should not be there.