Is state disability taxable? We did not receive a 1099-G. My husband was injured and received state disability insurance.

[KatrinaB · Accepted solution]

Disability Insurance (DI) benefits are not taxable except when considered to be a substitute for unemployment compensation when paid to an individual who is ineligible for unemployment insurance (UI) benefits solely because of the disability. In this case, you would have received a form 1099-g.