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Level 2
posted Jun 7, 2019 4:38:24 PM

Should CA SDI withheld (box 19 of W2) be included in Line 71 of CA 540?

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1 Best answer
Intuit Alumni
Jun 7, 2019 4:38:26 PM

Your employer put your CA SDI withholding amount in the wrong section of the W-2 - it's supposed to be in Box 14. Remove your entries for that in W-2 Boxes 18-20 and enter the $$ amount in Box 14 and select CA SDI tax from the dropdown list. It will then be handled correctly. SDI is not an income tax withholding so it does not show up in your Calif return as a credit in line 71.

2 Replies
Intuit Alumni
Jun 7, 2019 4:38:26 PM

Your employer put your CA SDI withholding amount in the wrong section of the W-2 - it's supposed to be in Box 14. Remove your entries for that in W-2 Boxes 18-20 and enter the $$ amount in Box 14 and select CA SDI tax from the dropdown list. It will then be handled correctly. SDI is not an income tax withholding so it does not show up in your Calif return as a credit in line 71.

Level 1
Jul 14, 2020 6:59:08 PM

I have the same question. I followed your instruction but when I get to the end, I'm told there is an error, and form 540 pops up with the excess SDI line highlighted in red - but with a 0.  And I'm not able to file my taxes online because of this "error"? I've been on hold with Turbo Tax for hours and had to eventually hang up every time. Help!