I received Short term disability from the State of CA for 6 months. I did not receive a W2 or any document from the state. QB added it as Unemployment income. Help?

[janestew57]

From what I read since it's from the State I should not be taxed on it. I didn't receive any tax documents from the state, but Quick Books automatically added it as Unemployment Income, which it was not.Should I just delete it?

[WillK]

Yes, if you have not received tax documents regarding the disability you received, you should delete it off since it would be considered non-taxable. If the employer shared (this does not count if you are self-employed)  in the cost for the premiums, then yes, the short term disability is taxable. The payments (claim payments) will be taxable based on the proportion the employer paid towards your premiums, and the portion paid by you if you used after-tax payroll deductions. If you paid for the premiums entirely by yourself using after-tax dollars, then the payments (claim payments) are not taxable.