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California Schedule CA (540) Line 13: HSA Deduction (2025)

Updated October 24, 2026. Quick answer: Line 13 of California Schedule CA (540) is the health savings account deduction. The booklet says California law does not conform to the federal deduction, so the amount is copied from column A to column B. A few other Schedule CA lines also mention HSAs, and this page lists each place the booklet names. The line 27 total then carries to Form 540.

What this line does

On the schedule the line sits in Section C and reads “Health savings account deduction”. The booklet’s instruction heading is “Line 13 Health Savings Account Deduction” in the list under “Line 11 through Line 25”. Section C is printed under “Adjustments to Income”.

The booklet states what the line does in two sentences: “Federal law allows a deduction for contributions to an HSA account. California law does not conform.” The federal side of the same deduction is explained on Form 8889 lines 9 to 13, and the state-level view is in whether California taxes HSA contributions.

Who it applies to

The booklet’s Section C text begins “California law is the same as federal law with the exception of the following:” and line 13 is one of the exceptions. The rule it prints for the line is the one above: “Enter the amount from line 13, column A, on line 13, column B.”

Column A itself is described as “Enter the same amounts entered on your federal Schedule 1 (Form 1040), line 11 through line 18 and line 20 through line 25.”

What the instructions say

LineWhat the form says
Section C heading“Adjustments to Income”
Line 13 label“Health savings account deduction”
Section C rule“California law is the same as federal law with the exception of the following:”
Line 13 instruction“Federal law allows a deduction for contributions to an HSA account. California law does not conform. Enter the amount from line 13, column A, on line 13, column B.”
Line 1h, employer contribution“Employer health savings account (HSA) contribution” “Enter the amount of any employer HSA contribution from federal Form W-2, Wage and Tax Statement, box 12, code W on line 1h, column C.”
Line 2, HSA interest“Interest or other earnings earned from an HSA are not treated as tax deferred. Interest or earnings in an HSA are taxable in the year earned.”
Line 7a, investments inside an HSA“Gain or loss from the sale of investments inside an HSA.”
Line 8f label“Income from federal Form 8889”
Line 8f, distributions“Distributions from an HSA not used for qualified medical expenses, and included in federal income, are not taxable for California purposes.” “Enter the distribution not used for qualified medical expenses on line 8f, column B.”
Part II, line 4“If you received a tax-free HSA distribution for qualified medical expenses, enter the qualified expenses paid that exceed 7.5% of federal AGI on line 4, column C.”

For the lines above Section C, Schedule CA (540) lines 4 and 5 is covered on its own page. The whole form is laid out in California Form 540 line by line.

The figures the form prints

Only one HSA figure appears, in the Part II line 4 instruction: “enter the qualified expenses paid that exceed 7.5% of federal AGI on line 4, column C.” Part II is the schedule’s section for adjustments to itemized deductions.

The percentage in that Part II sentence is the one this page quotes for HSAs.

Where the result goes next

Column B on line 13 rolls into the schedule’s total. The booklet says “Subtract line 26 from line 10 in column B and column C.” and “Line 27, column B to Form 540, line 14.” and “Line 27, column C to Form 540, line 16.”

The line 26 total is described as “Add line 11 through line 23 and line 25 in column B and column C.” For the federal numbers behind column A, see Form 1040 lines 9, 10 and 11 and HSA contribution limits.

Edition and line numbers

This page reads California 540 Forms and Instructions, 2025 Personal Income Tax Booklet for tax year 2025, the current file the Franchise Tax Board served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.

Common mistakes

  • Leaving the HSA deduction in column A only. The booklet says “Enter the amount from line 13, column A, on line 13, column B.”
  • Forgetting an employer contribution. The booklet says “Enter the amount of any employer HSA contribution from federal Form W-2, Wage and Tax Statement, box 12, code W on line 1h, column C.”
  • Reporting HSA investment sales only as federal numbers. The booklet lists “Gain or loss from the sale of investments inside an HSA.” among the line 7a items.

Related: whether California taxes HSA contributions, Form 8889 lines 9 to 13, Form 1040 lines 9, 10 and 11, and HSA contribution limits.

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Sources

  • California 540 Forms and Instructions, 2025 Personal Income Tax Booklet, Franchise Tax Board: www.ftb.ca.gov
  • Related official page (not quoted): Franchise Tax Board, 2025 Personal Income Tax Booklet page: www.ftb.ca.gov

Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.

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