I recieved sdi for maternity leave and then pfl after. I recieved a 1099g for my pfl but nothing for my sdi. does the sdi ned to be claimed and if so what type of income is it considered?

[GeoffreyG · Accepted solution]

Are you asking about California State Disability Insurance (SDI) and California Paid Family Leave (PFL) benefits?

If you are, then you should know that California PFL benefits are taxable at the federal level (as the IRS considers them the same as unemployment compensation); but the same PFL benefits are not-taxable by the State of California.  So, if you have a Form 1099-G showing your PFL benefits, you would enter those in the appropriate section of the TurboTax program.  When you get to the California state TurboTax module, the PFL benefits will be excluded from state taxation.  Please see some attached screen images I created demonstrating this process (please just click them to open).

With respect to the CA SDI benefits, they are not taxable by either the IRS, or by the state of California.  Therefore, you would not receive a tax form for it (because you don't have to enter those benefits into your tax returns).  In other words, simply ignore your CA SDI income for tax purposes.

If you are asking instead about a different state than California, please indicate that state in the comments section and we can update this answer.