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View Full Version : Do I need to claim my state disability income on my taxes?


kimmike
Jan 25, 2008, 08:51 PM
I live in California and have been receiving state disability for 8 months. Do I need to report this income on my taxes this year? If so, do I have to pay both state and federal taxes on this money?

Thank you:)

CliffARobinson
Mar 10, 2012, 01:50 PM
SDI benefits are taxable only if paid as a substitute for unemployment insurance (UI) benefits. This could occur if a person was receiving UI benefits and then became disabled. When SDI benefits are received as a substitute for UI benefits, the SDI is taxable by the federal government but is not taxable by the State of California.

You will only get a Form 1099-G if all or part of your SDI benefits are taxable.

Source (http://www.taxes.ca.gov/Income_Tax/specialind.shtml#Disability)