California Excess VPDI

Forum|Forum|6 years ago
February 22, 2020
3 replies
34 views

Lacerte is not properly calculating Excess SDI/VPDI on CA540, line 74, when an employee has 2 jobs and at least one of them has VPDI.

As a workaround, you can put them in as SDI, and Lacerte properly calculates the excess. Then you can change them back to VPDI.

Lacerte Tax

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

removed

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

George4Tacks

Level 15

This does seem to be working properly. SDI is in Screen 10 as code 15, and VPDI as code 41. Be sure that both w-2's are coded to TP or to SP.

To see codes, right click the dark gray bar that shows the screen # and select "show codes"

Answers are easy. Questions are hard!

J

jerryAuthor

Level 6

Many of us using Lacerte don't use codes. I don't...

These are inputs coming in from SurePrep's 1040Scan, but they sure look OK on the input screens. I've even deleted them and re-typed. But they don't calculate correctly unless I first put them on SDI and then move them back.

abctax55

Level 15

V PDI and S DI aren't the same thing... the V = voluntary.

Perhaps this will help:

IRS Rev. Rul 81-194, and that ruling by the IRS specifically states that such employee withholding payments to California voluntary plans are NOT tax deductible.

HumanKind... Be Both

George4Tacks

Level 15

I realize most do not use codes, but knowing they are there can be helpful. You need to be sure that the SDI for job 1 is entered as SDI and the VPDI for job 2 is entered as VPDI. See the image for the two entry points.

This will create the overpayment of SDI credit on the 540. It will add the SDI to State Tax Paid on Schedule A, but not add it for VPDI. Putting both as SDI will likely elicit a letter from FTB about an error on the return, since as previous pointed out these are definitely two different flavors of the same thing.

You should not be hunting for a fix. IT AIN'T BROKEN..

Answers are easy. Questions are hard!

Sign up

Login with SSO

Let's get you signed in

Login with SSO