Can I claim CA SDI tax credit if I have never lived in California

[getthereslowly]

I work remotely for a company in California. In 2021, I paid CA SDI tax. However, I have never lived in CA during the entire 2021.

I am wondering if I can claim the CA SDI tax I paid as credit when I file my tax? If so, how should I do it?

Thank you!

[Vanessa A]

Yes, you can use the CA SDI tax as an itemized deduction on your federal return.  The amount should be included on your W2, so when you enter that information from box 14 TurboTax will automatically transfer that to your Itemized taxes paid.

[getthereslowly]

Thank you for the response. Can I use it as tax credit instead of deduction? My understanding is that CA SDI tax is something that I am not supposed to pay since I have never lived in CA.

[VolvoGirl]

No.  You should try to get it back from the employer.  I would say to file a California return but you don't get it back that way unless you had more than 1 W2 and paid over the max CASDI.   Did the employer also take out California withholding in box 17?

[getthereslowly]

1. Yes, I have another W2 but that W2 is from MI.

2. Yes, on my CA W2, they also withheld CA State tax. 

[VolvoGirl]

Then you might want to file a CA return to get the withholding back.  Or you have to file a CA return to report the income.   I don't know how that works.  CA might still tax your CA income.