Mandatory State Tax

Forum|Forum|4 years ago
March 9, 2022
1 reply
0 views

I have 2 W2s. One for a regular job. The other is from a Deferred Compensation program, called DCAP with a prior employer.

The Regular Job W2 has an SDI payment amount associated with it - no problem.

The DCAP W2 does NOT have an SDI payment by "design of the DCAP program"; at the time that my compensation was deferred, I did not pay "income taxes", but I paid the SDI on that amount. Now, I do not have to pay that SDI.

However, TurboTax for my IRS return shows that I am liable for a State Mandated Tax of $1540. I have looked at ways to "update" this, but can't find it. I have not yet filled out my State Tax return, but assume that I will have the same issue. How do I fix this in both my IRS and California returns?

Thank you. Patrick.

MaryK4

Level 15

After you enter your W2s, you should see a follow-up screen where you can indicate that it is deferred compensation so the SDI error should clear. (see below)

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

BastaPaAuthor

Level 4

MaryK1101:

Thank you for this, but 2 questions:

- which option out of the list covers a "deferred compensation" situation. I do not see this topic in the list of options.

- can I get to this list of questions now that I have already entered this W2? Or do I need to delete it and re-import it?

Thank you. Patrick.

BastaPaAuthor

Level 4

The CASDI error is based on the calculation check - while you are correct there should be a method to indicate that it is not subject to CASDI, a workaround is to enter a Box 14 CASDI amount on the W2 that will equal the $1539.58 wen added to the W2 with your wages. That will allow the filing.

@BastaPa

Well, I followed your guidance, and it does not look like the rest of the information in terms of "printing font", but I was able to enter the max SDI ($1540) and it seems to have resolved the problem. I will make sure that this translates also into the CA State forms.

Thank you for your help. Patrick.