W-2 CASDI, Turbotax, box 14 vs box 19

[shankz]

Hi,

My employer has entered CASDI under box 19. Also, box 14 is kept blank.

In TurboTax, if I fill that CASDI amount in box 14, there is a significantly larger state tax refund compared to if I fill it under box 19.

Why is this so?

[shankz]

For reference, 2022 California Employers Guide mentions that Box 19 needs to be used to report CASDI.

https://edd.ca.gov/pdf_pub_ctr/de44.pdf

Why would Turbotax treat box 14 and box 19 in different ways? 

[Critter-3]

CASDI in box 19 is the old way to do it and some employers still do that.  TurboTax recognizes both places but box 14 is preferred.  It is okay for you to enter it in box 14 with the drop-down menu for CASDI rather than box 19.  No correction is necessary.

CASDI only matters if you itemize and choose to deduct state taxes rather then sales tax since CASDI is a deductible state tax.   TurboTax should carry that tax to Schedule A whether it is in box 14 or box 19.

[shankz]

Hi,

Thanks for the explanation. 

My itemized deductions are higher than the standard deductions.

CA tax refund is different depending on whether I enter the CASDI value in box 14 or box 19. 

This shows that Turbotax is treating these two boxes differently, right? Why is this the case? 

Also, if it is the old way to do it, why does the 2022 Employers guide from CA govt still recommends to use box 19?

[VolvoGirl]

Did you have more than 1 employer?   The SDI Withholding Rate for 2021 is 1.2 percent. The SDI taxable wage limit is $128,298 per employee for calendar year 2021.  The maximum to withhold for each employee is $1,539.58.  If one employer took out more you have to get it back from the employer.  

Box 14 or 19 should not make a difference in your state return.   When you put it in box 14 did you remove it from box 19?

[shankz]

Hi,

Thanks for this. I did some calculations based on what you commented. Please read below.

Yes, I had two employers. One gave me a W-2 with CAVPDI mentioned in box 14. The second one gave me a W-2 with CASDI mentioned in box 19. 🙂

For the first employer, since W-2 mentions CAVPDI in box 14, I followed that itself in Turbotax.

For the second employer, if I follow what they did (i.e keep box 14 blank and enter the box 19 number in box 19 itself), then the tax refund is less.

Instead, if I enter the box 19 number into box 14 of TurboTax, I get a higher tax refund.

Extra tax refund on doing this = CAVPDI (box 14) from Employer #1 + CASDI (box 19) from Employer #2 - 1539.58

Also, box 19 value doesn't seem to be doing anything. The CA tax refund depends on box 14 value, but it stays the same irrespective of box 19 contents. 

[VolvoGirl · Accepted solution]

Yes then move box 19 to 14.  You get the excess back.    Turbo Tax wants it in box 14.