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<< Is the W-2 reporting of the SDI tax significant as far as eligibility for itemization and deduction?

Looking at a a few different W-2s, the SDI amounts are reported variously in boxes 14 and 19. Based on perusal of some earlier posts, and the 1040 sch. A (and W-2) instructions, I think the employer has the choice of where to report this, and it has no significance as far as whether or not it may be included on schedule A, right? >>

Placement on the W-2 makes no difference.

<< 2. If an employer offers an "enhanced" disability plan (typically supplement or replace the SDI payment to enable payout of a larger fraction of salary during disability), is this still itemizable? (If yes, presumably, only up to the normal ceiling on SDI taxes.) >>

Neither a replacement nor a supplement is deductible, because neither is a tax. (Disability premiums are not deductible as a medical expense either.) If the employer offers a supplement and you still pay SDI, you can still deduct the SDI.

Phil Marti
Tax Preparer
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