Is CASDI also considered part of state income taxes?
Can I add the CASDI (box 14 on my W-2) to the total amount on state tax withheld (box 17 on my W-2) and put the total on form 540 (CA Tax Return) in line 36? After all that's some type of tax that I am paying, right? Shouldn't that be part of the total state tax withheld? I paid $216 during the tax year and it would make a big difference if that could be part of state taxes withheld, my return would result in a refund, instead of owing the FTB of California.
Public Comments
- No you don;t add it to withheld amount. But if you itemize it can be listed under other taxes that you paid.
- no Federal rules allow only taxes that are levied as a percentage of income or as a percentage of an asset's value as a deduction. my understanding of CASDI [I'm not in CA] is that it has an upper limit on the annual contribution and thus isn't eligible under Federal rules. the CASDI is separate from the CA income tax for a reason -- it does not count as income taxes withheld for CA purposes either.
- it can't be claimed as a credit on your california return, but you can deduct it on schedule a of your federal return if you itemize.
- No. CASDI is state disability insurance which pays you if you are sick or injured for an extended period of time. You have to be out for a week before filing a claim. CASDI is deductible as a tax if you itemize deductions. It is not a credit towards the state income tax you owe. If you draw benefits, they are not taxable (unlike unemployment which is.)
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