HSA has NEVER been deductible on the CA return.  If there is a contribution, that is an adjustment on line 25 of Schedule CA. If there is a distribution AND IT IS TAXABLE FOR FEDERAL, then it will show up on line 21, with an adjustment back out in Column B. PTO does the presentation and computations automatically for CA resident. If there is a code W on the W-2, then PTO automatically makes an adjustment to wages on line 1 of Schedule CA.  HSA is a NON thing for CA.