Disability Income, Taxable by Fed or State (Ca) ?? or not??

[diitto]

My wife became ill and was hospitalized for six days in May, 2022.  We live in California.  She was out more days than she had remaining sick days.  She applied for Disability in California and received something under $3,000.  I must now determine if this money is taxable for Federal???  And/or taxable in California???  I've seen some questions here that offer what appear to be very confusing answers... Bottom line is, Taxable Federal, yes or no???  Taxable by California, yes or no???  Any help would be much appreciated...  

[Mike9241]

don't know if this completely answers your questions.

The Internal Revenue Service has ruled that the payments received under California’s Paid Family Leave insurance program are taxable for federal income tax purposes. According to the IRS, Family Temporary Disability Insurance payments are in the nature of unemployment compensation under Section 85 of the Internal Revenue Code. California’s Employment Development Department must report the FTDI payments to the IRS on a Form 1099G and, for federal tax purposes, FTDI payments must be included in a claimant’s gross income. The benefits, however, are not subject to California income tax under Revenue and Taxation Code § 17083 .

Recipients of benefits under the Paid Family Leave program received a letter with their benefits checks informing them that the IRS might consider the payments taxable income. Additional steps are being taken to notify claimants that the Forms 1099 they receive this year will reflect the taxable income.

but if they're not under CPFL program then these are the rules

1) amounts paid by an insurer attributable to premiums paid by the employer and not included in the employee's income are taxable as are amounts paid directly by the employer 

2) disability insurance payments attributable to premiums paid by the taxpayer including after-tax contributions to an employer-sponsored  plan, and employer-paid premiums if taxed to the employee are not taxable 

if taxable you should receive a 1099.  

[sun14]

I live in California and I was on short term disability for FML for 12 weeks. It was extended until it was exhausted recently. I am currently on long term disability.

Is the short term & long term amounts I received from CA disability taxable by Fed? 

If yes, what percentage should I be holding aside? Do I use the award amount or my gross income as the taxable income? Is there a chart where it will tell me what percentage I should be withholding? 

From what I am reading, it will not be taxable by state (CA).