I'm a US resident alien with FL residence. I have an HSA in CA but am not a CA resident.
1) Is the interest taxable by CA?
2) Are contributions to it (from non-CA sourced income) taxable by CA?
According to the section entitled "Interest & Dividends
" of http://www.flatworldknowledge.com/pub/1.0/fundamentals-income-tax
-theory/30994, it would seem the answer is for the most part "No"... but http://www.benefitscafe.com/articles/taxtreatment.html contradicts this and the 3rd bullet in the 1st column of p6 for the instructions for "Schedule CA Form 540NR" (Non-Residents) http://www.ftb.ca.gov/forms/2008/08_540nrcains.pdf basically says 'CA doesn't allow a deduction
for contributions to an HSA' .
In regards XXXXX XXXXX 1 & 2:
When I called www.ftb.ca.gov to ask them this question, they said "No", but then again they said I wouldn't owe any taxes on the interest earned either?
Here is a link to all the CA tax forms: http://www.ftb.ca.gov/forms/2008/index.shtml