California Excess SDI (or VPDI) with held.

Forum|Forum|2 years ago
March 5, 2024
1 reply
2 views

I am a California residence. I recieved a letter from State of California Franchise Tax Board saying I own a balance from tax year 2022.

I filed CA tax form 540NR using Turbotax Desktop download. The balance is related to line 84 - Excess SDI (or VPDI) with held. I worked at two companies during 2022, hence two W2s. Company A paid VPDI $1,601(Max withhold for 2022), and company B paid SDI $1000. When TurboTax calculating line 88 - total payments, this $1000 was included into total payments. Then for line 104 - Tax due, I paid $1000 less to State of California.

However, it seems like State of California Franchise Tax Board doesn't recognize the $1000 Excess SDI with held, and asking me to pay the $1000 + penalty + interest.

Any suggestions?

ThomasM125

Level 15

I agree that the total disability insurance payment due for the year is not more than the $1,601 that you paid, so you would be due a refund of the additional $1,000 paid in. I suggest you write a letter in response to the tax due letter you received and explain what happened and include any documentary information that would be helpful in explaining your position. CA EDD information

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Jay147Author

Level 2

Thank you very much for your response. Do you have an example of such a letter to explain my situation? I'll include both of my W2s in the letter, I was wondering what else is needed.