@adm According to the state of California's Employment Development Department, if you live in California and receive State Disability Insurance (SDI) payments the disability payments are not taxable but there are some exceptions. It all depends on whether or not you are receiving unemployment benefits.
Per the California EDD, individuals who leave work due to a disability and receive disability payments do not have to report these for tax purposes. the important exception is if you are getting unemployment benefits and become injured or ill and start receiving disability benefits, those benefits now serve as a replacement for unemployment payments and per Federal Tax Regulation Section 1.85-1. Thus these payments are taxable
