What is the ca-sdi deduction on my w-2

Forum|Forum|7 years ago
May 31, 2019
5 replies
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Best answer by VolvoGirl

That is California state disability insurance. It is a mandatory tax.

When entering your w-2, put your CA SDI amount in box 14 instead of box 19 (if it is in 19) so that it will be deducted as part of your state/local income taxes paid.

The max for Calif. SDI for 2013 is $100,880 wages x 1% = $1,008.80 tax. It is a hard maximum imposed by payroll laws. Please enter the cents for this amount.

VolvoGirlAnswer

Level 15

clara-wells

Level 2

I had an issue b/c my box 20 is empty, but it's not supposed to be if CASDI is listed in box 19. When searching, I found that box 14 vs box 19 is a common issue for CASDI. The CA government website says it belongs in box 19. Check the bottom of page 114 titled STATE DISABILITY INSURANCE.
<a rel="nofollow" target="_blank" href="https://www.ftb.ca.gov/individuals/vita/Training_Course/Catalog/TWTips.pdf">https://www.ftb.ca.gov/individuals/vita/Training_Course/Catalog/TWTips.pdf</a>

SloanProfessionalServices

Level 2

Form W-2 is a federal form, not a state form, so the instructions for the federal W-2 is what should be followed. Those instructions state SDI should be in box 14, not 19, whether the state website says box 19 or not. Here are the W-4 instructions from the IRS W2 instructions form and it's on the back of the W-2:

Box 14. Employers may use this box to report information such as state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a member of the clergy’s parsonage allowance and utilities. Railroad employers use this box to report railroad retirement (RRTA) compensation, Tier 1 tax, Tier 2 tax, Medicare tax, and Additional Medicare Tax. Include tips reported by the employee to the employer in railroad retirement (RRTA) compensation.

BTW: opinions on these things should always be backed up with references to credible sources. Even as a CPA, the opinion is not necessarily a credible source. Hope this helps!

squartucci

Level 2

The max for CA SDI for 2018
The maximum SDI to withhold from employees' paychecks for 2018 is $1,149.67, up from $998.12 for 2017.

If the amount in box 19 exceeds this amount then Turbo tax will give an error message and fail to e-file.

Box 19 must be adjusted to no more than the maximum limit. Limit may apply to all W2's having CA SDI entries.