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In California, Local income tax - where does it go?

Greta
Level 9

"Local income tax $927, Locality Name SDI"

It does not show up in the return. I rarely do CA returns. SDI is to be ignored?

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alphy
Level 3

It's California State Disability Insurance. Should be in box 14 of W-2, not local tax. In ProSeries, enter the description in box 14 as "CASDI", enter the amount, and the program will take care of the rest.

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5 Comments 5
Just-Lisa-Now-
Level 15
Level 15

It will get included in the SALT amount on Sch A, thats all its good for.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
alphy
Level 3

It's California State Disability Insurance. Should be in box 14 of W-2, not local tax. In ProSeries, enter the description in box 14 as "CASDI", enter the amount, and the program will take care of the rest.

BobKamman
Level 15

It's also good for a larger state refund if more than the annual limit was paid by multiple employers.  

Greta
Level 9

Right! I looked at last year's W-2, and it was done correctly in Box 14 as CASDI rather than as local tax with SDI "locality." It's good to know more about this for someone whose clientele is 99% Virginia.

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Just-Lisa-Now-
Level 15
Level 15

I see it reported in both box 14 and 20, I always enter it in Box 20, so I don't have to scroll way down the page to Box 14


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪