Voluntary Plan for Disability Insurance (VPDI) is not deductible on the federal tax return (Schedule A) per Rev. Rul. 81-194. Entering the VPDI amount on the Wages-W-2-Other Information screen will transfer the total amount to the Excess SDI/VPDI Withheld Worksheet. If there is excess withheld, it will flow to Line 74 of Form 540 or Line 84 of Form 540NR.
To enter or remove VPDI:
- From within your TaxAct® return (Online or Desktop) click Federal.
- Click Wages and Salaries in the Federal Quick Q&A Topics menu to expand that section and then click Wage income reported on Form W-2
- Click +Add Form W-2 to create a new copy of Form W-2 or click Review to review a copy already entered
- Select Quick Entry or Step-by-Step Guidance
- If you select Step-by-Step Guidance, continue to the screen titled Wages-W-2-Other Information and enter the amount for Voluntary Plan for Disability Insurance contributions (CA VPDI). You must enter the appropriate state data on the previous screens for this field to appear.
- If you select Quick Entry, the VPDI amount is entered in the Disability and Unemployment Insurance section under Other Items reported on this copy of Form W-2