Should I receive a second 1099G for state disability if I received a 1099G for unemployment?

[S--Schreiner]

I received a 1099G for my husbands unemployment that ended at the beginning of January 2016. After unemployment ended his doctor put him on state disability which is paid through the same group in CA, EDD. Should I have received a second 1099G form for him? Or would the first form include that? The form only shows the last bit of his unemployment income.

[GeoffreyG · Accepted solution]

It is possible that you could receive a second 1099G from the California Employment Development Department (EDD), but not at all guaranteed.  As you probably know, your husband's unemployment compensation is taxable by the federal government (the IRS), but is otherwise California state tax exempt.

You would only get a second 1099G for the state disability payments if they were determined by the state to be a "substitute" for unemployment compensation.  In that instance the tax treatment of these benefits would be just the same as described above.  However, if you do not get a second 1099G, then you can safely assume that the CA EDD disability payments are completely non-taxable.

Here is what the state of California has to say on the matter (exact quote):

"State Disability Insurance (SDI)

SDI provides temporary payments to workers who are unable to perform their usual work because of a pregnancy or a nonoccupational illness or injury. Beginning July 1, 2014, California workers may be eligible to receive Paid Family Leave benefits when taking time off of work to care for a seriously ill parent-in-law, grandparent, grandchild, or sibling. SDI benefits are taxable only if paid as a substitute for unemployment insurance (UI) benefits. This could occur if a person was receiving UI benefits and then became disabled. When SDI benefits are received as a substitute for UI benefits, the SDI is taxable by the federal government but is not taxable by the State of California.

You will only get a Form 1099-G if all or part of your SDI benefits are taxable. If your SDI benefits are taxable and you don't receive your Form 1099-G by mid-February, you may call EDD at (800) 795-0193 to get another copy."

Here is a link to my government reference source:

http://www.taxes.ca.gov/income_tax/specialind.shtml

Hopefully that provides enough information for you to determine a path forward.  That is, you can either file your tax return(s) now, or you can call the CA EDD as ask them if another 1099G will be forthcoming.

Thanks for asking this important question.

[cttr22]

I have received a 1099G from California that shows Unemployment and Disability in the breakdown, but they paid me much more for SDI than the amount stated in the form. Does this mean the income was not taxable or that they will be sending another 1099G with the rest of the SDI?

Table A
Type of UC Payments
1. Unemployment Compensation (UC)
$12,600.00
UI $5,400.00
DUA $0.00
PUA $0.00
DI $7,200.00
2. State or Local
Income Tax
Refunds, Credits,
or Offsets
$0.00
3. Box 2 Amount is for Tax Year
(a) 2021
Benefits
Repaid
$0.00
(b) Prior Year(s)
Benefits Repaid
$0.00

[JohnW152]

@cttr22

What’s reported on the 1099-G is supposedly taxable on your federal return.  

According to the California Employment Development Department’s (EDD’s) Get Your Tax Information (Form 1099G) page,  

Form 1099G reports the total taxable income we issue you in a calendar year, and is reported to the IRS. As taxable income, these payments must be reported on your federal tax return, but they are exempt from California state income tax. [Bolding mine.]

That said, if you think the taxable income amounts reflected on Form 1099-G, it might set your mind at ease to contact the EDD.  Please see Contact EDD for relevant contact information.