NJ SDI and SUI amounts rejected in Box 14 for being too high.

The figures provided in Box 14 from my W-2 are being rejected by TurboTax for being too high.

"Form W-2 Box 14 amount -2 - New Jersey SDI cannot be greater than $148.50"
"Form W-2 Box 14 amount 3 - New Jersey UI/WF/SWF cannot be greater than $126.22"

My payroll company say the figures on my W-2 are correct, NJ SDI = $158.13 and NJ SUI = $127.70.  It seems the software has not been updated to reflect the correct deduction rates for 2010.
    The right way to fix the problem is for the employer to pay you back the excess amount that was withheld, and give you a corrected W-2 showing the correct amounts. You can get around the problem by entering the lower amount in TurboTax.

    There are two reasons that TurboTax cannot allow you to enter the incorrect higher amount. One reason is that you cannot enter more than the legal maximum on Form NJ-2450. The other reason is that  these taxes are deductible on your federal tax return if you itemize deductions, but you cannot deduct more than the correct amount of tax.

    This is really the employer's error, and the employer should correct it, not just by changing your W-2, but by giving you the money that was improperly taken out of your pay. Then the corrected W-2 would show the amount that you actually paid.
    • What is the best thing to do if this happens and its April 17th?
      Do I:

      1. enter the lower amount, eFile, and tell my employer to issue a corrected W-2
      2. file an extension
      3. file by mail with the 'incorrect' amount even though this was the correct amount taken out of my paycheck, then potentially refile an amended return later?

      The difference is 69.83 but it doesn't seem to affect my Refund/Tax owed.
    The figures your payroll company told you are not correct. The correct maximums for 2010 are the figures that TurboTax shows. You can download Form NJ-2450 from the NJ Taxation web site at the following link. The maximum amounts are at the bottom of the first page of the form.

    • I'm running into the same problem...I've entered 131.42 and the check error is telling it can't be greater than 126.22..the answer here is pointing me to other form to fill...can I just lower the amount to 126.22 to bypass?
    • You are right rjs about the maximum amounts but if an employer or employers have overpaid SDI or SUI then that is what is on the W2's. Whether you bother to reclaim it or not those are the reported figures so TurboTax should really allow you to enter them so they match your W2's. The employer can not change the W2 as it isn't wrong, those are te figures they paid to the state. I entered the lower amount as it will be in the Feds and States favor as you have effectively paid more taxes but are not claiming them. It may lead to questions being asked though. A claim could be made to the State for the overpayment but for me it is only about $11.
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