http://www.taxes.ca.gov/Income_Tax/specialind.shtml#Disability
According to the above information on State Disability Insurance (SDI).
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. If your SDI benefits are taxable and you don't receive
your Form 1099-G by mid-February, you may call EDD at (800) 795-0193
to get another copy. For more information, see IRS Publication
525, Taxable and Nontaxable Income.
