Is state paid disability taxable on my federal return?

[pmccorm1960]

I was on CA state-paid disability during part of 2021. Does the IRS tax this? The income does not show on my W2 and I received no tax forms from the state.

[hbl3973]

pmccorm1960,

According to https://www.nolo.com/legal-encyclopedia/are-state-short-term-disability-social-security-disability-b... , CA short term disability income is not taxed by the federal government.

[LenaH]

In most cases, Disability Insurance (DI) benefits are not taxable. But, if you are receiving unemployment, but then become ill or injured and begin receiving DI benefits, the DI benefits are considered to be a substitute for unemployment benefits, which are taxable.

If your DI benefits are taxable, you will receive a notice with your first benefit payment. You will receive a Form 1099G for your federal return only. The DI benefits are reported to the IRS up to your unemployment maximum benefit amount.

If you do not work because of a disability and receive DI benefits, those benefits are not taxable.