Extra CA VPDI Withholding for 2024

[ishant89]

Hello,

I am in a strange situation where I have found out that my two employers for the year 2024 withheld extra amount for CA VPDI from my pay stubs. In this tax year, I happened to have 2 employers such that employer A deducted $1647 until it got maxed out & employer B deducted $1952 upto its maximum limit for the year 2024. I am using TurboTax Online for filing my state return and it doesn't seem to pick both of the CA VPDI deductions from my W2s from two employers. Actually, It seems to be picking just one. Hence, it's not reporting excessive VPDI deductions in my state tax return which in theory I should be getting as a refund from California as a part of tax return filing. 

I haven't submitted my state tax return yet. So, I am looking for suggestions on how to input that information correctly in TurboTax Online so that I can get that extra amount as a refund.

Thanks in advance! 

[MonikaK1]

On January 1, 2024, SB 951 eliminated the Taxable Wage Ceiling. There is no longer an excess deduction amount.

From this California FTB webpage:

For taxable years beginning on or after January 1, 2024, California law removes the taxable wage limit and maximum withholdings for each employee subject to State Disability Insurance (SDI) contributions. All wages are taxable for the purpose of computing SDI worker contributions. As a result, the Excess SDI (or VPDI) withheld line will be removed from the personal income tax return by updating the line as “reserved for future use”. For more information, go to the Employment Development Department (EDD) website at edd.ca.gov.

If you are not seeing the amount deducted for both W-2s, check to make sure that the VPDI (SDI) is listed in the same place on both Forms W-2, in Box 14. Some employers will enter VPDI in a different box so that the total isn't added together. 

[ishant89]

Yeah removing wage limit holds true for SDI and I am not talking about SDI here. Specifically for VPDI, it seems to be managed by employers and there is a wage limit for that. Also, I checked my pay stubs from my current employer and they stopped withholding for CA VPDI after reaching the limit. Since I worked for 2 employers (not at the same time) in 2024, my previous employer has withheld an amount for CA VPDI which is an excess to what I should have paid in 2024 for VPDI.

Yeah I did come across articles where it did mention that the line item will be removed. However, I couldn't find any information how to claim a refund on excess VPDI payment (not SDI).

[KeshaH]

The VPDI contribution limit was also removed starting in 2024. For more information, see Contribution Rates and Benefit Amounts.