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02-24-2016 12:40 AM
On Line 40j of Schedule CA (540), you enter your HSA Distributions. These distributions are deductable to the extent they exceed 7.5% of Federal AGI (p6 Schedule CA (540) Instructions 2015 (REV 01-16)). HRBLOCK software does not do this calculation. But enters the full amount on Line 41. I think this is an error in the software. Below are the instructions for line 40.
I looked everywhere on the web site for a place to ask this question directly to HRBLOCK, but it seams that they don't want email.
04-13-2016 12:49 AM
Looks like they just fixed it. I was submitting my return and it said I needed to update software, when I did I owed and additional $600. The old one had the HSA included, the update removed it.
02-09-2017 04:47 PM
I understand the instructions on the form and the software is calculating. But, can someone give me a sighting for California that this deduction does NOT need to be for only current year incurred expenses. Having not withdrawn from the HSA account for several years, I decided to reimburse myself for expenses that were incurred from 2009 through 2016. I can't imagine that I can deduct the amount over the 7.5% AGI on CA for all the costs incurred prior to 2016.
04-14-2018 05:55 PM
The problem documented above still exists for the 2017 HRBlock version. However a new wrinkle exists: For the 2017 tax year the Federal threshold is now 7.5%, no longer 10%. That means with California's threshold also at 7.5% for the Fed AGI, the calculation should always net out to be zero.