Box 20 on my W2 shows NY SDI. The only option that box gives me to select from in New York city or Yonkers. What should I do?

What you are seeing is the NY SDI (State Disability Insurance) deduction.  It is included in your W-2 in Box 20 because it may be deductible as a state and local tax, if you itemize your deductions on Schedule A.  If you do not work or live in NYC or Yonkers, leave the Locality Name blank.

I work and live in Brooklyn NY. On my W2 in Box 20, I have NY SDI. TurboTax says that is an error.

Box: 18: 260.00
                947.47
Box 19: 1.30
               20.98
Box 20: NY SDI
               NEW YORK CITY

How do I move forward with TurboTax?

 

Thanks,

Dan

How do I clear the error in TurboTax?

Box 20 is the name of the locality where you are paying the tax in box 19. If you have information in those boxes, you will need that income used in a return for that locality. Some places, like NYC, will make it part of the state return.

Therefore, enter New York City since the state disability payments were made for NYC.

 

Return to the W-2 entry to review the entries for boxes 18 through 20 of the W-2.  Follow these steps:

 

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & Income.
• Under Your income, scroll down to W-2.
• Click on Edit/Add to the right of W-2.
• Click on Add another W-2.
• At the screen Now let's update the rest, scroll down to Boxes 18-20.

Box 20 may require the name of a locality.

 

See the link below:

 

W-2 SDI

 

@DFerry