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    nigam2012's Avatar
    nigam2012 Posts: 33, Reputation: 2
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    #1

    Feb 26, 2012, 06:15 PM
    CA SDI on Schedule A 1040 NR
    Can I add CA SDI to State and Local Income taxes on 1040 NR Schedule A? I understand a NRA has to file 1040 NR and has to itemize the deductions.

    I know that CA SDI can be added to State and local income taxes on Schedule A (1040), but it is not clearly mentioned that the same can be done on Schedule A 1040NR as well.

    Can clarification will be appreciated.

    Thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #2

    Feb 26, 2012, 07:03 PM
    No, you can not add CA SDI to state and local taxes as itemized deduction.
    nigam2012's Avatar
    nigam2012 Posts: 33, Reputation: 2
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    #3

    Feb 26, 2012, 07:11 PM
    Thanks Mukat. But you see it is allowed on 1040 Sch A. And not allowed on 1040 NR/EZ Sch A? Strange. IRS really likes to tax non residents :)
    newacct's Avatar
    newacct Posts: 321, Reputation: 21
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    #4

    Feb 27, 2012, 01:26 AM
    Quote Originally Posted by MukatA View Post
    No, you can not add CA SDI to state and local taxes as itemized deduction.
    Why not?
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    MukatA Posts: 7,110, Reputation: 176
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    #5

    Feb 27, 2012, 06:32 AM
    Nonresidents do not get any tuition and fee deduction and medical deduction. SDI is payment for state disability insurance. On resident return this is allowed as itemized deduction under state and local taxes.
    newacct's Avatar
    newacct Posts: 321, Reputation: 21
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    #6

    Feb 27, 2012, 02:25 PM
    Quote Originally Posted by MukatA View Post
    Nonresidents do not get any tuition and fee deduction and medical deduction. SDI is payment for state disability insurance. On resident return this is allowed as itemized deduction under state and local taxes.
    But SDI *is* a state income tax (1040 schedule A instructions, as well as Publication 17, say so). The other deductions are irrelevant.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #7

    Feb 27, 2012, 07:06 PM
    SDI is not state or local income tax. It is contribution to SDI. From publication 17 "Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5."

    Publication 17 also has this "You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income."
    Most nonresidents on F-1, has some income exempt from federal income tax based on tax treaty. SDI is deducted even on this exempt income.
    Let us get views of AtlantaTaxExpert.
    nigam2012's Avatar
    nigam2012 Posts: 33, Reputation: 2
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    #8

    Feb 28, 2012, 06:17 PM
    Atlanta Tax Expert , can you please advice?
    nigam2012's Avatar
    nigam2012 Posts: 33, Reputation: 2
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    #9

    Feb 29, 2012, 01:10 PM
    I asked this question on another tax forum and they indicated that CA SDI can be deducted while filing 1040 NR on Schedule A along with state and local income taxes.

    http://taxforum.us/individual-income-tax-forum/t-can-ca-sdi-be-added-to-state-and-local-income-taxes-on-1040-nr-schedule-a-8180.html#post22522
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