Quite right Katie. I didn't explain quite enough. In
California, NO income taxes can be deducted ON THE
CALIFORNIA RETURN, and that includes SDI.

Nan, EA in LA

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Nan, EA in LA wrote:

- quote -

We can deduct it for federal income tax purposes. But both
states disallow any deduction for state or local income
taxes; therefore, it's not deductible on your state return.
Before Mr. Trujillo, there was an argument that it could be
deducted as an employee business expense, which the state
would allow. But the Tax Court case scotched that.

Katie in San Diego

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SDI is considered a tax on income. It is added to the
withholding listed as a deduction on Federal Schedule A. It
is not, however, deductible on the state returns.

Some of us old timers still think kindly of Mr Trujillo of
Tustin, CA, who went to Tax Court when IRS, back in around
1972 or 3, denied his SDI deduction which cost him $22 in
income tax. He said it was a tax and doggone it, taxes
should be deductible!. He won in Tax Court and IRS made the
error of appealing it. Now both California and New York
taxpayers can deduct it.

Nan, EA in LA

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<rxp2158[at]ix.netcom.com> wrote:

- quote -

It's deductible on your federal Schedule A as "other tax".
It doesn't appear on either of your state tax returns.

Ira Smilovitz

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My W-2 has a amount of $31.20 in box 14 (other) -- state
disibility insurance. I live in New Jersey and work in New
York. How do I account for this amount on my Federal and/or
New York State tax forms?

As Always Thanx in Advance,

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