Form W-2 Information
Form W-2 is filed by employers to report wages and taxes. The amounts of SDI withheld appear on your Forms W-2. You may claim the excess SDI on Form 540 or Long Form 540NR. You cannot claim the excess SDI on Form 540 2EZ or Short Form 540NR. If you normally file Form 540 2EZ and are eligible to claim excess SDI you should switch to Form 540 to claim the credit. Short Form 540NR filers must use Long Form 540NR to claim the credit.
Employee Tax Return Process
Employers must use the right W-2 form for the right year. The IRS updates these forms annually. Using an outdated form can result in errors. Employees use W-2 information to prepare tax returns. Tips may be on your W-2. Independent contractors get 1099s from clients, not W-2s.
You should receive a W-2 from every employer that paid you at least $600. This way, you can confirm your tax return reached its destination. Make copies of W-2 forms and schedules sent with your return. Keep certified mail receipts as proof of delivery. Promptly contact the IRS if you mailed your return to the wrong address.
California Tax Return Attachment
You should attach Forms W-2, W-2G, 1099, 592-B, and 593 to the front of your California tax return. Use Form 540 to claim the excess California SDI refund. You should switch to Form 540. Short Form 540NR filers should use Long Form 540NR to claim the credit.