Additionally, if you received a state tax refund in the previous year for overpaid SDI, that refund amount might need to be reported in Box 14 to avoid double-dipping on your current return. The information is crucial for calculating your state refund or liability when you file your California return (Form 540).
Common Scenarios for Box 14 CA SDI on Your W-2
If you changed jobs within California, you might see entries from multiple employers, each detailing their respective SDI withholdings. The year-to-date total for SDI withholding should match the cumulative amount taken out of each paycheck.
Why is SDI Reported in Box 14? Box 14 exists to report any additional tax information that doesn't fit into the standardized fields of the W-2. What is California State Disability Insurance (SDI)? California State Disability Insurance (SDI) is a state-run program funded by employee payroll deductions, separate from the federal Social Security system.
Common Scenarios for Box 14 CA SDI on Your W-2
If you notice a discrepancy—such as the W-2 showing a different amount than your final pay stub, or no amount in Box 14 when you believe there should be one—you should contact the California Employment Development Department (EDD). The EDD is the state agency responsible for administering the SDI program and can provide clarification on your contribution history.
More About W2 box 14 ca sdi
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