melj1
Employee Tax Expert

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SDI benefits are taxable only if paid as a substitute for unemployment insurance (UI) benefits. When SDI benefits are received as a substitute for UI benefits, This is likely not the case but, you would receive a 1099 in January if the is the case.

 

Unemployment benefits were tax free in 2020. Do not expect that in 2021. You should receive a 1099-G in January and that will need to be entered on your tax return.

 

The new job should provide you a W-2 in January and needs to included on you tax return.

 

Congratulations and good luck with your new position.

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