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Question

California excess SDI not calculated properly (online turbotax 2022 bug)

Forum|Forum|3 years ago
March 5, 2023
6 replies
0 views

My wife worked for two companies in 2022 and had excess SDI withheld ($718 (company 1) + $1103 (company 2)= $1821 total). The maximum SDI limit for 2022 is $1601.60 = 1.1% of $145,600. That's $219 excess SDI withheld. However, the online turbotax completely ignores this and does not include it in the return (line 74 in CA540). The reason, I believe, is that the inclusion of excess SDI is likely triggered by sum of her two W2 box 1 values (tips, wages, other). This number, in her case, comes out to be $145,130, which is less that $145,600. However, SDI withheld throughout the year is not based on this number, so this should not be the threshold for calculation of the excess SDI. Because of this bug, my current CA is wrong. I've spend over 4hrs on the phone with different folks at TurboTax. Either they don't understand the problem or they don't know how to fix it. Please help.

TurboTax Premier Online

DaveF1006

To clarify, do the amounts in Box 14 of both W2's equal $1821?

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jangir-selimkhanAuthor

The sum of Box 14 amounts from the two W2s is $1821. (thanks for the clarifying question).

VolvoGirl

Employee

One thing to check. Make sure each W2 is entered under her name. Is the EIN different on each W2? And if the SDI is in box 19 move it to box 14.

jangir-selimkhanAuthor

Checked. Looks like everything is entered correctly.

mmm999

I'm having this problem now. Turbo tax wont allow the Efile to go thru because it's over the $1601.60 limit. I paid for Efile because there were no errors and now it's saying there is an error and wont let me Efile. How do we fix this Turbo Tax glitch? The input I have matches the W2 exactly so it's not an error on my end. HELP!!!

mmm999

I'm talking about the SDI and VPDI on box 14 of the W2. Both these amounts are posted on the W2 and turbo tax is asking me to fix the form 540 since I'm over by 133.00 but these are the amounts that are on my W2, so am I supposed to not show whats on my W2? this is the first year the employer has put 2 items in box 14 and now it's screwing everything up. I'm ready to file, please advise on what I can do to move this along

HopeS

Please try the following steps and let us know if this does not work;

You will need to make your entries in the step-by-step section to have them pulled into your forms.

Try the following:

Log back into your TurboTax Program.
Select the Federal Taxes tab on the top
Select Wages and Income
Select I'll choose what I work on
Select Wages and Salaries
Select Edit to the right of each W-2 form and confirm your input in box 14 as shown in the sample below.

SDI input

Your input in this section will pull into your state return and the calculation will be done by TurboTax as applicable.

Please also see additional information in the link below:

Excess SDI California

@mmm999

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jangir-selimkhanAuthor

@HopeS Thanks for the link, but I’ve already tried this. Excess SDI calculation should not be triggered based on total of entries in box 1 of W2. It should be either triggered by the actual SDI withheld or the gross income, which is what SDI withholding is based on. TT for some reason triggers SDI withholding calculation based on W2 box 1 entries but that is wrong.

MonikaK1

Some TurboTax Online/Desktop customers have been experiencing an issue when they live in California and have excess SDI deductions. There isn't presently an option to enter the credit in Interview mode.

We’re working to resolve this issue. If you’d like to receive progress updates, please sign up at this help article link.

Taxpayers who file a California return would request the credit for excess SDI on their California return. In a case where you have SDI withheld by a single employer that exceeds the annual limit ($1,601.60 for 2022), you would need to request a refund from the employer. If you don't have a California tax return filing requirement, you would request a refund of Excess SDI through the California EDD. See here for the California EDD refund form.

@jangir-selimkhan

@smmb1

@mmm999

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whateverdeh555

When will this be updated? I've paid for my State Tax to be submitted electronically. Should I submit manually and I get a refund because I can't submit because of this bug? The link to stay informed isn't working.

thank you!

MonikaK1

The issue with the excess SDI credit has been fixed very recently, which is why the signup link is no longer active. Users who reported the issue at the link were sent the following email on April 7th:

"There’s an update on the TurboTax help article you’re following: "[California Excess SDI]".

We’re happy to inform you that we’ve updated TurboTax and resolved the issue you experienced

If you’re using TurboTax Online, it’s been updated automatically. Just sign in and you can continue working.

If you’re using the TurboTax CD/Download Software, download and install the latest update. You can do this through the prompt when you launch the software or by following these instructions."

If you had excess SDI withheld by a single employer, the credit doesn't apply and you would need to request a refund from the employer. The SDI taxable wage limit is $145,600 per employee for the calendar year 2022. The maximum to withhold for each employee is $1,601.60.

If you are seeing an error message that the amount exceeds the limit, you can just enter the limit in Box 14 of the W-2, and request a refund from the employer.

See this California FTB webpage for more information.

If you had two employers, and the amount both withheld together came to more than the limit, then you may get a credit for the excess. See the discussion in this thread for more information.

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jangir-selimkhanAuthor

@MonikaK1 any chance you can clarify exactly what problem was actually fixed and how? In my case, it doesn’t appear to have fixed anything.

whateverdeh555

I just tried the submittal again. I have $0 for SDI excess and it keeps kicking it back in the final check so I can't submit. I've restarted the software, the computer, and all patches are updated. Not fixed for mine. Should I get a refund for the State tax and submit hard copy??? Thank you!