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Friday, April 04, 2008

CA SDI questions. Can we deduct from Schedule A itemized state taxes ?

Are you asking about deducting SDI that you paid, or having to report SDI benefits (disability benefits) that you received?Disability benefits that you receive from the state (California) are nontaxable and you do not need to report it.For the SDI insurance contributions you paid through your paycheck as a withholding, you can deduct them against your federal tax (if you itemize) as a state tax deduction if the contribution appears on your W-2 as "SDI" or "CASDI". The alternate, voluntary program that appears as "VDI", "VPDI" or "CA VPDI" is nondeductible.