California excess SDI not calculated properly (online turbotax 2022 bug)

[jangir-selimkhan]

@HopeS Thanks for the link, but I’ve already tried this. Excess SDI calculation should not be triggered based on total of entries in box 1 of W2. It should be either triggered by the actual SDI withheld or the gross income, which is what SDI withholding is based on. TT for some reason triggers SDI withholding calculation based on W2 box 1 entries but that is wrong.

[jangir-selimkhan]

@smmb1 How do you enter it manually with online version of TT? 

[MonikaK1]

Some TurboTax Online/Desktop customers have been experiencing an issue when they live in California and have excess SDI deductions. There isn't presently an option to enter the credit in Interview mode.

We’re working to resolve this issue. If you’d like to receive progress updates, please sign up at this help article link.

Taxpayers who file a California return would request the credit for excess SDI on their California return. In a case where you have SDI withheld by a single employer that exceeds the annual limit ($1,601.60 for 2022), you would need to request a refund from the employer. If you don't have a California tax return filing requirement, you would request a refund of Excess SDI through the California EDD. See here for the California EDD refund form.

@jangir-selimkhan 

@smmb1 

@mmm999 

[whateverdeh555]

When will this be updated?  I've paid for my State Tax to be submitted electronically. Should I submit manually and I get a refund because I can't submit because of this bug? The link to stay informed isn't working. 

thank you! 

[MonikaK1]

The issue with the excess SDI credit has been fixed very recently, which is why the signup link is no longer active. Users who reported the issue at the link were sent the following email on April 7th:

"There’s an update on the TurboTax help article you’re following: "[California Excess SDI]".

We’re happy to inform you that we’ve updated TurboTax and resolved the issue you experienced

If you’re using TurboTax Online, it’s been updated automatically. Just sign in and you can continue working.

If you’re using the TurboTax CD/Download Software, download and install the latest update. You can do this through the prompt when you launch the software or by following these instructions."

If you had excess SDI withheld by a single employer, the credit doesn't apply and you would need to request a refund from the employer. The SDI taxable wage limit is $145,600 per employee for the calendar year 2022.  The maximum to withhold for each employee is $1,601.60.  

If you are seeing an error message that the amount exceeds the limit, you can just enter the limit in Box 14 of the W-2, and request a refund from the employer.

See this California FTB webpage for more information.

If you had two employers, and the amount both withheld together came to more than the limit, then you may get a credit for the excess. See the discussion in this thread for more information.

[jangir-selimkhan]

@MonikaK1 any chance you can clarify exactly what problem was actually fixed and how? In my case, it doesn’t appear to have fixed anything. 

[whateverdeh555]

I just tried the submittal again. I have $0 for SDI excess and it keeps kicking it back in the final check so I can't submit. I've restarted the software, the computer, and all patches are updated. Not fixed for mine. Should I get a refund for the State tax and submit hard copy???  Thank you! 

[jangir-selimkhan]

@whateverdeh555 I ended up using another tax software that didn’t have this bug and asked for a refund from TurboTax.

[whateverdeh555]

Thank you!  How did you request the refund? I'm hoping they can still fix this in time, but I should get refund if it's not done in coming days. Thx again! 

[jangir-selimkhan]

@whateverdeh555you can search for “how do I request a refund for my TurboTax product?” and it will give you an option to select what product you want a refund for and why. Since I used online version, this approach resulted in automatic denial of the request. I ended up calling TT, first person gave me some standard answer of we can’t do anything about that, but I asked to speak to the manager, who understood the issue and approved the refund for the online version.

 

[lynne40]

I am using the online version and still having the issue. I have tried everything in these threads and still line 74 on my CA return shows zero. What else can I try?