State of CA form 540 requiring Excess SDI amount but my W-2 does not have an amount

Forum|Forum|6 years ago
February 22, 2020
6 replies
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I am trying to e-file and it wants me to correct this " Form 540: Excessive SDI- To electronically file this return, you ,must enter W-2 information (including California withholding and SDI withheld) directly on the Form W-2 Wage and Tax Statements included in the Federal program. My W-2 is for $1.39 and it does not have any amount for CA SDI. How can I fix it? I am in the transmit stage and have already been charged $19.99. HELP

MAK70

Try to enter 0 in the W2 Box 14 with CASDI as the description.

Florabunda

I have the same issue. Entering zero in box 14 did not solve the problem. Any other suggestions?

DMarkM1

Try this. Go back to the W2 entries and delete all box 14 entries and be sure to hit delete/backspace several extra times to ensure there are not stray spaces. They should all be blank. Finish the interview and try the review and file interview again.

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dmcguerty

At the 1-yard line of filing both Federal and State, now Turbo Tax Asking me for CA Form 540 Excess SDI. I enter it right there on the form it presents, then it says "Filing....", but then comes back and says it needs a little more info and again asks me for the CA Form 540 SDI all over and over and over and over....

THIS IS TORTURE.

And of course, good luck trying to get someone from TurboTax on the phone. They clearly are not customer-friendly and the "Bot" is dumber than a 4-year old.

BillM223

@dmcguerty

If you have not been able to make this work, I would delete the W-2 and re-add it by hand. Don't import the W-2.

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psherman42

go back to the beginning of the federal income section try deleing the ENTIRE item for that W-2 ... or even all of the W-2's;

then re-enter all data again, carefully. don't touch any boxes which have 0's or blanks.

JCM_tax

I am having the exact same issue. I have already e-filed my federal return. I have paid my $26.99 for my California state e-return. Now I can't e-return. I am getting to the final page and it gives me the "form 540 excess sdi". Is there a way to bypass this message. My employer charged me $1.69 more than the allowed amount. I don't care about the $1.69. But Turbo tax won't let me continue

Mark Henesian

I think this is a coding error in TurboTax 2020 !

On our paystubs and W2 no CASDI was taken out of pay or recorded on the W2. Hence zero excess CASDI. Box 14 on the W2 is blank.

Just delete the 0. from the TurboTax question box that pops up (make it blank), and the State return will go through !

hanjlee22

I'm trying to filing 2023 tax and had an exact same problem. In my case, I don't have any W2s. Your recommendation fixed the problem and was able to e-file California tax.

Thanks for the tip.

eurbul

A couple of years later Turbo Tax still has not fixed the issue. Tested the options listed on this thread, ending up just deleting box 14 entry all together. Then the filing went through. Probably get less of a refund - so quite annoying.

This might have something to do with importing the w2 directly, I have entered the w2 manually for years before and there was never a problem. Very painful.

psherman42

Box 14 is something more or less of a comment field. It explains what items have already been included in box 1. Things like SDI, VPI, VPDI, etc. are items already included as normal compensation (benefits to you, usually as a little bit added each pay period) being taxable as normal income gain. It's the employer's payroll personnel who would know, and be responsible for, too little or too much reported into box 1, and thus reflected as a comment in box 14.