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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

  1. No you don;t add it to withheld amount. But if you itemize it can be listed under other taxes that you paid.
  2. 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.
  3. 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.
  4. 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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