Question

Where do I find the information to plug into my Health Savings Account Earnings?

Forum|Forum|5 years ago
February 27, 2021
1 reply
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It says CA state taxes your Health Savings Account Earnings. I am trying to figure out where I can find those. I moved to CA in Nov. 2020. I had an ongoing HSA account with Fidelity that is invested. I assume this means I need to plug in any earnings from that HSA account for the state of CA (correct me if I am wrong).

I have not used any of the HSA funds.

Lastly, I pulled up my Q4 statement from Fidelity for my HSA account. I see a value listed under "Income Summary" year-to-date. I am guessing that is the amount I have to put in for the earnings? However, it asks me to break it down by interest earned, dividends earned, and net capital gain or loss from HSA. I am not sure where I can find that specific breakdown of information.

TurboTax Self Employed Online

ReneeM7122

Correct, the value listed under Income Summary on your Fidelity staement is the amount I have to put in for the earnings

Enter your own HSA contribution as a personal HSA contribution in the 1099-SA, HSA, MSA section of TurboTax. The contribution will appear on Form 8889 line 2 and the deduction will appear on Form 1040 line 25.

(Your HSA contribution does not reduce you net profit from self-employment, so it does not affect the amount of self-employment taxes you must pay.)

Here is a TurboTax article about HSAs.

D

dmd3521

I contacted Fidelity regarding reporting/taxation of earnings on Health Savings Accounts to the State of California, and they have never heard of this! Under my income summary for 2023, I show $643.57. is this what I report? And do I report it as interest, dividends, or capital gains? I have never pulled money from this account - I'm letting it grow for use in my old age. So ay capital gains are unrealized at this point.

SusanY1

California has pending legislation to update this, so please disregard my earlier message that this had changed.

The law has not yet changed and California still doesn't conform to the rules deferring gain on HSAs.

@dmd3521

[Edited 3/1/24 12:40 PM PDT]

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