Why ER HSA Contribution on a CA nonresident's W-2 form subject to CA income adjustment?
A Colorado full-year resident has passive loss from a minor ownership to a CA partnership holding CA farming property - he files a multi-state tax return.
His W-2 income is 100% Colorado sourced income with a Employer HSA contribution. Even I'm filing a Form 540NR and checked "Non Resident" on Sch CA-NR, ProConnect still gives me critical diagnostic warning, until I adjust CA income to include the ER HSA contribution as a CA taxable income.
Client's only CA income source has a ordinary loss, but now he needs to pay a CA tax on part of his CO wages, which is hard to make sense...any one has the relevant CA tax code that I can quote? Or anything on ProConnect needs to be fixed? Thank you in advance!
