I found this in our knowledge base: California State Disability Insurance (SDI) benefits are generally not taxable, either on a federal level or on a state level. In fact, they are never taxable, except when considered to be a substitute for unemployment compensation, and when paid to an individual who is ineligible for Unemployment Insurance (UI) benefits only because of the disability.
You would need to report the 1099G for PFL on your Federal form but not California. PFL benefits are not subject to California state income tax. Additionally, no SS or Medicare taxes are due on the benefits received. So you will only need to report the amount on the 1099G for Federal and the rest is tax free.
