TaxesTech
Level 4

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!

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