Solved: Is California State Disability Income taxable
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Is California State Disability Income taxable

 
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Is California State Disability Income taxable

No, per the California State Economic Development Department, if you leave work because of a disability and receive disability benefits, those benefits are not reportable for tax purposes.

However, if you are receiving unemployment benefits, become ill or injured, and begin receiving disability benefits; those Disability benefits are considered a substitute for Unemployment and are reportable for tax purposes up to your Unemployment maximum benefit amount.

According to the IRS, Disability benefits that are considered a substitute for UI are taxable. Federal Tax Regulation Section 1.85-1 states that Disability benefits are considered to be a substitute for Unemployment benefits when paid to an unemployed taxpayer who is not eligible for UI benefits solely because of the disability.

For more information, you can visit the link below: 

http://www.edd.ca.gov/Disability/SDI_FAQ_for_1099G.htm

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Is California State Disability Income taxable

No, per the California State Economic Development Department, if you leave work because of a disability and receive disability benefits, those benefits are not reportable for tax purposes.

However, if you are receiving unemployment benefits, become ill or injured, and begin receiving disability benefits; those Disability benefits are considered a substitute for Unemployment and are reportable for tax purposes up to your Unemployment maximum benefit amount.

According to the IRS, Disability benefits that are considered a substitute for UI are taxable. Federal Tax Regulation Section 1.85-1 states that Disability benefits are considered to be a substitute for Unemployment benefits when paid to an unemployed taxpayer who is not eligible for UI benefits solely because of the disability.

For more information, you can visit the link below: 

http://www.edd.ca.gov/Disability/SDI_FAQ_for_1099G.htm

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