CA SDI tax withheld is greater than max, TurboTax won't let me e-file

[cmvaughn]

The max SDI that can be withheld supposedly is 1183.71 for 2019. I had two employers last year. One of them (Employer A) entered my CA SDI as $101 more than the max. I've already received a credit on the amount from the other employer, but TT won't let me e-file because this amount from Employer A is more than the max, they say I have to "Fix it" or mail in the return.  I'm not sure what I have to do here. Do I have to:

A) Mail in the return instead of e-file because of this discrepancy?

B) Reduce the amount in TT to the max and just accept the $101 I'll never see again?

C) Do "B" but also ask previous Employer A to refund me the $101 (or something else?)

[JotikaT2]

First, I would recommend that you review your input in the wages section. 

TurboTax will calculate the excess withheld and generate the refund for the excess SDI.

1. Go to Income & Expenses
2. Go to Wages
3. Select Edit to the right of each W-2 forms.
4. Scroll down to box 14.  This is where you should have entered your SDI amounts.

If you have entered the amounts in this section for each W-2 Form, you will be able to proceed through the screens to electronically file you return.

[cmvaughn]

@JotikaT2 thanks for responding. So I have entered the numbers, and they are correct according to my W2. The extra amount from the second employer did already get set up as a refund. But my first employer still reported 101 over the max. Even after checking it three times, it says "you may have selected the incorrect code." Is the code not supposed to be "CA SDI"? Do I need to claim credit for this extra $101 from the first employer separately? 

It's also not obvious to me if I can go back and edit my state return deductions if I do have to do this.

[VolvoGirl · Accepted solution]

How much is in box 14 on that W2?  Yes do your B & C.

The SDI Withholding Rate for 2019 is 1 percent. The SDI taxable wage limit is $118,371 per employee for calendar year 2019.  The maximum to withhold for each employee is $1,183.71.  If one employer took out more you have to get it back from the employer.  So enter the max for box 14 on that W2.

Excess CA SDI will be on CA 540 line 74.  See 540 Instructions Page 13 line 74

https://www.ftb.ca.gov/forms/2019/2019-540-booklet.pdf

[1t2]

I have the exact same issue and am running into the same problem/bug that TT has.

I had two employers last year and the total SDI is larger than  $1183.71. I let TT pull in the values automatically and that caused an error.

after reading this thread I went back and removed the SDI for the second employer and that didn't help.

I tried to balance, the value between the two employers, the same. delete it from the first one and put it on the second one or any other combination that would make it max $1183.71 or less, to no avail.

Very frustrating, as it doesn't let me file the darn thing and be done with it!

Any help would be appreciated.

[VolvoGirl]

No.  You should enter the actual SDI amounts on each W2.  You should get the excess back on your California return.  Enter the SDI in box 14 and not box 19.  You can move it to 14.  Try deleting the W2s and entering them manually.  Is one or both of them the max?  Try leaving the cents off.

What problem are you having?  It won't let you efile?  Just CA or Federal too?

[marykings25]

I'm having a similar issue.. husband had 2 different employers and withheld more than max but TT is not computing excess SDI. I've tried all suggestions (deleting and re-entering manually, leaving cents off, etc) but nothing works - don't want to pay $50 to file state when TT is missing out on ~$50 excess SDI.

Was anyone able to solve this?

[AmyC]

@marykings25 Try this, in case it is something stuck:

1. Delete the box 14 entries.
2. Log out of your return
3. Try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cookies and cache, instructions on the links.
   • Internet Explorer
   • Mozilla Firefox
   • Google Chrome
   • Safari
   • Safari for iOS (mobile devices)
   • Sign in using a different browser.
   • Sign in using a different device.
4. Log back into your return.
5. Enter the line 14 information again.

You are welcome to use Turbo Tax chat.or you can fill this form out for someone to call you.

[doover25]

SOLVED:

I had only 1 employer.

I had excess SDI on my W2, but TurboTax wouldn't let me file.

The fine/bolded print at the bottom of the Excess SDI Worksheet says:

• 1 employer
• you were taxed more than 1% of gross
• Then you CANNOT claim excess but need to contact your employer for a refund.

Thus, I blanked Form 540 Line 74 (no zero, but blank) and the error went away and I was able to efile.

[jajlu]

Removing the cents from the CA SDI tax on the second W-2 fixed the problem. I guess the key is to make them look different. Thank you.

[jimborollin]

Same issue, I can't file. I removed the cents, still won't let me continue. 

[MonikaK1]

Try deleting the W-2 and reentering it.

If that doesn't work, try the steps provided by AmyC earlier in this thread.

[benderjl]

The problem these people are reporting, just like me, is not that there is a problem with our computers or the calculations, it is that TT is not letting us submit the amount that is actually listed on the W2 when it is over the limit. No, the withholding on line 14 is not supposed to be over the limit but it is anyway, and TT doesn't seem to have a method for dealing with that properly. In my case, it was over by literally one penny, so I just changed the amount. We'll see what happens. I've no idea what to do if the overage is substantive.

[VolvoGirl]

If it is over by more you have to get the overage back from your employer.  So you still need to only enter the  max CASDI in box 14.  For 2023 the max for CA SDI/VPDI is $1,378.48 which will round down to 1378.  So you can delete the .48 cents.  Everything on the returns get rounded.