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March 1, 2021
Question

California SDI is greater than the maximum SDI/VPDI withholding

  • March 1, 2021
  • 1 reply
  • 0 views

I'm trying to file my taxes and I'm stuck in "review" step. I'm getting the following message:

 

"On Form W-2 from [...], you entered California SDI and/or VPDI greater than $1,229.09. Since the maximum SDI/VPDI withholding for 2020 is $1,229.09, you may have entered an incorrect code on an entry in box 14. Review your entries, and make any necessary changes."

 

My actual CASDI-E withholding is $1,229.12. TurboTax is apparently forcing me to change this number to $1,229.09 and won't allow to file without this change. I can do that, but wonder would it be legal for me to put a number in tax return that I know is inaccurate (even by 3 cents).

1 reply

LenaH
March 1, 2021

Yes, it is legal and you can adjust the California SDI withholding .03 cents. 

 

Generally, for all tax returns, the following rounding rules apply:

  • Amounts under 50 cents round to zero. Increase amounts from 50 to 99 cents to the next dollar.
  • If two or more amounts must be added to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

You can follow the steps below to edit your W-2:

  1. Open your tax return. 
  2. Search for W-2 with the magnifying glass tool on the top of the page. 
  3. Select the Jump to W-2 link at the top of the search results.
  4. Click on Edit next to your W-2.
  5. Adjust your SDI withholding. 
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