Turbo Tax won't e-file because it says NJ SDI cannot be greater than zero

[thalmbi]

This error came about when I tried to e-file both Fed and NJ State (already paid for the state return).  This seems to be an error in Turbo Tax Deluxe:

"Form W-2 Box 14 amount - New Jersey SDI cannot be greater than $0.

Box 14 amount $55.72

Only have one W-2 and the SDI is not greater than the max amount.

Is there any work around?  Turbo Tax will not allow the files to be transmitted.

Is this a glitch in the Turbo Tax software?

[CatinaT1 · Accepted solution]

According to the State of New Jersey, There will be no Disability worker contribution deductions for the 2023 and 2024 calendar years.

If your employer withheld SDI from your pay, you will need to contract them for a refund. 

If you had two or more employers that deducted SDI, you can claim a credit on Form NJ-2450. This credit is not available if you only had one employer that deducted SDI.

Here is NJ Division of Taxations Guidance.

Can you edit your W2 entry for box 14 and remove the NJ SDI amount or change the amount to $0 and see if you can successfully e-file? Please reply back to let me know.

@thalmbi 

[thalmbi]

Hello CatinaT1:
Yes, you are correct, and thank you very much for such a fast response!

After I posted my question, I looked on a NJ.gov site and with what I learned, I was able to form a better inquiry on the TurboTax message board, which answered why TurboTax stated the NJ SDI should be zero for 2023 (and as I found out, for 2024 as well), since NJ was not collecting the deduction.  I will have to go back to my employer and have that reimbursed to me.

Since NJ is not expecting the NJ SDI deduction, I was then confident to remove it from my W-2 in TurboTax (actually I just set it to zero), without worrying that its removal would flag something.  Then, when I tried to e-file my returns, both the Fed and NJ went through with no further problems.  I received my Fed acceptance 36 minutes later, and my NJ acceptance 26 hours later.

Note to TurboTax: since the software did indeed realize the error regarding me entering a non-zero value for NJ SDI in my W-2, rather than just cryptically saying that this value cannot be greater than zero, how about giving a little more of a prompt indicating that NJ didn't collect the deduction, etc.?  One of those pop-ups, maybe?

This problem was solved rather quickly, so I am satisfied with TurboTax, and especially the Community help.

Thank you again!

Bill T