Question About CA Return (Form 540NR) /Line 16 Califonia Adjustments - Additions (mainly HSA)

[workhard2022]

My question about individual tax return/ California form 540 NR/Line 16 and here is the taxpayer background:   Bill live in CA state from Jan to April of 2023. Then Bill lived in WA state for the rest 2023. Bill received two form W-2s (#1 and #2) in 2023 since he changed his job after moved to Washington state. 

His W-2 (#1): withhold CA taxes and has HSA contribution $1000 in box 12.

His W-2 (#2) No withholding taxes since he lived WA state-no income tax state. and it has HSA contributions $1500 in box 12..

So, questions are:  when I filled out his CA form 540NR/Line 16 "Califonia Adjustments -Additions". should I add the $1000 HSA contribution from his first W2 (CA state) and $1500 HSA from his second W-2 (WA state)?   or should I only include the $1000 from his First W2 since that's one withheld CA taxes, but not the second one ($1500)?

Thank you so much! 

[George4Tacks]

Generally shows the HSA as a difference in wages, so the only adjustment is in wages on the Schedule CA, not in HSA. 

[workhard2022]

Thank you for your help George, but I feel you didn't answer my questions.

Have a great day!

[George4Tacks]

Do the CA and WA wages add up to the federal wages? My guess is that they do not and that would tie into my non answer from above.

[George4Tacks · Accepted solution]

Here is another non answer https://accountants.intuit.com/support/en-us/help-article/state-taxes/resolve-proconnect-diagnostic-...

YOU need to figure out the answer from ALL THE INFORMATION YOU HAVE.

[workhard2022]

yes, but they are two seperate form W-2s. thanks

[George4Tacks]

Does the federal wage on the California W-2 match the CA wage on the W-2. The CA wage should be higher because of the HSA. If it is them the adjustment should be shown on the Schedule CA as an wage adjustment and you don't need to worry about the HSA adjust.

Give all the numbers and I can check it out. Bits and pieces ain't doin' the job.

[workhard2022]

thank you for your response, George.  I have decided to ignore this taxpayer's second W-2 for the "CA return HSA adjustment" since he earned that W-2 while he lived in WA not CA.

[itonewbie]

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I have decided to ignore this taxpayer's second W-2 for the "CA return HSA adjustment" since he earned that W-2 while he lived in WA not CA.

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@workhard2022 That's not how it works.  CA taxes PY/NR on an as-if basis.

Read what George says and the linked article carefully again.  You should also review the filing instructions to understand what is required.