How to Deduct California SDI From Federal Taxes

How to Deduct California SDI From Federal Taxes
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Contributions Listed on Schedule A

Your contributions to the SDI program are reported in Box 14, labeled as "Other," on your W-2 statement. To claim a deduction for these contributions, you must file a 1040 tax return and itemize your deductions. Take the number found in Box 14 and transferring it to Section 5, labeled "Taxes You Paid," on Schedule A. Check box "5A" to indicate the deduction is for state income taxes. SDI contributions are characterized as state income taxes because they are deducted from the taxpayer's paycheck. Finish adding the rest of the deductions you wish to claim on the form, then compare your total itemized deductions with the standard deduction. List whichever is greatest on Line 40 of your 1040 form.