California SDI form 540----state review giving me an error to fix

[jgb1mookie]

I am going through the Turbo tax federal and state checks just before filing.   Federal sailed throw, but state (California) is asking about Excess SDI.   I don't think I have that however I did notice that the two employers I had last year reported my California SDI in two different places on the W-2..   One reported it in boxes 19 and 20 of the W2.   the other reported it in Box 14 of W2.  would this cause a problem on the state taxes not matching the W2's?   What should I do?

[VolvoGirl · Accepted solution]

How much is on each W2?  Did you go over the max?  And better double check you entered the right amounts and didn't miss a decimal point, etc.

The SDI Withholding Rate for 2022 is 1.1 percent. The SDI taxable wage limit is $145,600 per employee for calendar year 2022.  The maximum to withhold for each employee is $1,601.60.  If one employer took out more you have to get it back from the employer.  So if box 14 (or 19) is more only enter the max for box 14 on that W2.

For 2022 the maximum tax is $1,601.60 per employee, per year ($145,600 x .011).

When entering your w-2, put your CA SDI amount in box 14 instead of box 19 so it will be deducted as part of your state and local income taxes paid on federal Schedule A.

Actually you are suppose to move the CASDI from boxes 19 & 20  TO  box 14.

[jgb1mookie]

Thank you....this is definitively not an issue of Excess SDI, seems to be more the W2 was filled out incorrectly by an employer.  would you know, do I have to request a corrected W2, or can I just note the change in my taxes?  best regards!

[SantinoD]

As long as you enter the SDI paid (reported in box 19 and 20) in Box 14 in TurboTax, you will not need a corrected W2. 

@jgb1mookie 

[Rudyellen82]

State review is still getting me an error to fix even though my SDI is on box 14 and I don't have excess SDI. Please show me where and hw to fix this so I can e-file my returns.

[VolvoGirl]

How much wages is in box 1?  And for the SDI?  The SDI Withholding Rate for 2022 is 1.1 percent.  So multiple box 1 x .011.  If the SDI is more than that just reduce the amount and get the excess back from the employer.  It could be from rounding so try leaving off the cents.  

[TomthaoPham]

I also get error during state review.  I entered SDI info exactly as shown in box 14 of W2.   

[MonikaK1]

As noted by VolvoGirl earlier in this discussion, 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 one employer took out more than the limit, you would need to ask for a refund from the employer. 

If you are seeing an error message that the amount exceeds the limit, you can just enter the limit in Box 14 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.

[ajprovost]

I had the same is where on CA540 Line 74 Excess SDI was always red.  The number did agree with my W-2.  We deleted the  W-2 Line 14.  We entered $0.  We renamed the entry from CASDI-E to SDI. In the end. We deleted the California return.  Saved with no California return. Reset the W-2 Line 14 entry to its original entry. Then reinstalled the California State return and the original Line 14 entry was accepted.

Delete California return, reinstall California return.  That is the fix. For me.  Good Luck

[wjsoares]

How do you delete the state tax return?

[DoninGA]

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@wjsoares wrote:

How do you delete the state tax return?

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See this TurboTax support FAQ for deleting a state tax return using the online editions - https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/delete-state-return-turbotax...

[dh2]

I'm getting the same error, and I don't HAVE any W-2's.  I'm self employed.... HELP!