Is the following deductable on Federal Form?
tr...@my-deja.com
<< ------------------------------------------ >>
Hello:
I live in California. I have the following item in
Box 14 of my w-2 form:
CA-VDI
I am not sure what this is. It may be a tax for
disability insurance.
Is this deductable as tax on the Federal forms?
Thanks,
Al
David Woods EA MST
<< ------------------------------------------ >>
> I live in California. I have the following item in
> Box 14 of my w-2 form:
>
> CA-VDI
>
> I am not sure what this is. It may be a tax for
> disability insurance.
>
> Is this deductable as tax on the Federal forms?
I believe it is indeed a tax for disability insurance and is
deductible on Form 1040 Schedule A as "Other Taxes"
David M. Woods, EA, MST
(617) 723-2422
Boston, MA
www.rytercpa.com
Helen P. OPlanick EA
<< ------------------------------------------ >>
> I live in California. I have the following item in
> Box 14 of my w-2 form:
>
> CA-VDI
>
> I am not sure what this is. It may be a tax for
> disability insurance.
>
> Is this deductable as tax on the Federal forms?
Yes, as *other taxes paid*.
Helen, EA in PA
Member of NAEA, NATP and the Tax Gang
Member of Electronic Tax Admin. Advisory Committee (ETAAC)
http://heljan.taxlogic.com
John H. Fisher
<< ------------------------------------------ >>
tr...@my-deja.com writes:
> CA-VDI
>
> I am not sure what this is. It may be a tax for
> disability insurance.
>
> Is this deductable as tax on the Federal forms?
Yes! Taxes you pay for disability and unemployment
benefits are deductible.
For wages up to $31,767 California employers must withhold
one half of one percent of your wages for State Disability
Insurance or Voluntary Plan Disability Insurance. This
amount should appear on your form W2 and may be identified
by the letters SDI or VPDI. The maximum amount that may be
withheld in 1999 is $158.84.
If you had only one employer in 1999 who withheld more than
$158.84 you must contact the employer to get a refund of the
excess amount withheld. If you had more than one employer
and received more than $31,767 in wages from these employers
combined and your employers together withheld more than
$158.84 from your wages you may claim a refund of the excess
SDI withheld when you file your California Income Tax
return.
"Jack" - John H. Fisher - TaxSe...@aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html
Where Ignorance is bliss, 'tis folly to be wise!=:)
cjrg...@my-deja.com
<< ------------------------------------------ >>
tr...@my-deja.com wrote:
> I live in California. I have the following item in
> Box 14 of my w-2 form:
>
> CA-VDI
>
> I am not sure what this is. It may be a tax for
> disability insurance.
>
> Is this deductable as tax on the Federal forms?
"VDI" or "VPDI" would be Voluntary Plan Disability
Insurance. Employers can offer a Voluntary Plan in lieu of
the mandatory state disability insurance (SDI). As I read
it, California's mandatory SDI is deductible along with
state income tax, but a Voluntary Plan would not be. Does
anybody who has experience with these know otherwise?
--
Chris Green
Ed Zollars
<< ------------------------------------------ >>
tr...@my-deja.com wrote:
> Is this deductable as tax on the Federal forms?
No, not if it is paid to a voluntary plan (and that's what
it looks like the "V" means <grin>). See Rev. Rul. 81-194,
1981-2 CB 54.
---
Ed Zollars, CPA (AZ)
ezo...@primenet.com
http://www.hmtzcpas.com
Gary Rand
<< ------------------------------------------ >>
<cjrg...@my-deja.com> wrote:
> tr...@my-deja.com wrote:
>> I live in California. I have the following item in
>> Box 14 of my w-2 form:
>>
>> CA-VDI
>>
>> I am not sure what this is. It may be a tax for
>> disability insurance.
>>
>> Is this deductable as tax on the Federal forms?
> "VDI" or "VPDI" would be Voluntary Plan Disability
> Insurance. Employers can offer a Voluntary Plan in lieu of
> the mandatory state disability insurance (SDI). As I read
> it, California's mandatory SDI is deductible along with
> state income tax, but a Voluntary Plan would not be. Does
> anybody who has experience with these know otherwise?
It's been some time since I moved out of the Golden State
(I didn't have enough gold), but I believe that you are
correct.
SDI is deductible, but a voluntary plan is not.
Gary Rand, CPA
tr...@my-deja.com
<< ------------------------------------------ >>
tr...@my-deja.com wrote:
> I live in California. I have the following item in
> Box 14 of my w-2 form:
>
> CA-VDI
>
> I am not sure what this is. It may be a tax for
> disability insurance.
>
> Is this deductable as tax on the Federal forms?
Well, I found an e-mail address fro the Cal State Franchise
Tax Board and posed the question to them. Here it is
straight from the horse's mouth:
"Thank you for visiting FTB's Website.
CA-VDI is California Disability Insurance and is not
deductible on your federal tax return.
Please visit our website again if we can be of further
assistance."
Al
tr...@my-deja.com
<< ------------------------------------------ >>
Hello:
After asking the question here, I found and e-mail address
for the California Franchise Tax Board. I posed the same
question to them. Here is dancer I received:
GenFinSvcs
<< ------------------------------------------ >>
> As I read
> it, California's mandatory SDI is deductible along with
> state income tax, but a Voluntary Plan would not be. Does
> anybody who has experience with these know otherwise?
As a CA practitioner, the above mentioned voluntary plan
would NOT be deductible.
GenFinSvcs
<< ------------------------------------------ >>
> Well, I found an e-mail address fro the Cal State Franchise
> Tax Board and posed the question to them. Here it is
> straight from the horse's mouth:
>
> "Thank you for visiting FTB's Website.
>
> CA-VDI is California Disability Insurance and is not
> deductible on your federal tax return.
>
> Please visit our website again if we can be of further
> assistance."
This is interesting. The FTB is specifically prohibited
from indicating whether any item is taxable or deductible
on a federal level.