13400

[#1]

The following diagnostic is generating:

Employer HSA contributions from the federal form W-2, box 12, code W are to be reported as an add-back on California Schedule CA-NR, Part II, line 1, column C. The program did not automatically include employer HSA contributions as an add-back on Schedule CA-NR. Please enter the total employer HSA contributions from all the W-2s in "Wages ${[A]}" (screen 51.011, code 15) for an add-back on Schedule CA-NR, Part II, line 1.

Solution:

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[bullbear]

Client is Ct FY Resident and has $79 of CA Nonresident income. Never physically present in CA  in 2021 and never lived in CA. It seems to me, that he should not have to add back his Code W HSA contributions of $6150 that he made as a CT resident.  Even if I only include the $150 employer contribution--the other $6000 was his, his $79 CA income turns into $229 CA taxable income. But for the $7 additional tax triggered, I am afraid to not include it. Hope to hear from you!! Thanks!

[KJSCWM]

Hi Bullbear, I'm a CA preparer. The way our non-resident returns are "built," you calculate total income for CA purposes, and then apportion it down in the tax calc.  So while I can't see/verify all your other inputs to know if the tax is correct, I can confirm that if the $6,150 is not in the Federal AGI at the top line of the return (which it shouldn't be), it DOES need to all be added back to compute CA AGI.

[joshuabarksatlcs]

@KJSCWM , well said.