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Level 1
June 1, 2019
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Do I have to claim my SDI (California benefits) as income on my federal taxes for tax year 2016?

  • June 1, 2019
  • 4 replies
  • 15 views

Do I have to claim my SDI (California paid benefits) as income on my federal taxes for tax year 2016 when I file?

    Best answer by

    Probably not.  California State Disability Insurance (SDI) benefits are generally not taxable, either on a federal level or on a state level.  In fact, they are never taxable, except when considered to be a substitute for unemployment compensation, and when paid to an individual who is ineligible for Unemployment Insurance (UI) benefits only because of the disability.

    If that is the case, where SDI benefits are received in lieu of UI benefits, then the California Employment Development Department (EDD) will provide the claimant with a Form 1099-G, showing the amount of the taxable benefits (if any).

    Thus, if you don't have a 1099-G indicating that your SDI benefits are taxable, you may safely exclude all of your SDI income from any tax return or form.  For more information on this topic, you can read summary tax guidance provided by the California EDD itself at the following webpage:

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

    (See the FAQ:  Is SDI reportable for tax purposes.)

    Thank you for asking this important question.

    4 replies

    Answer
    June 1, 2019

    Probably not.  California State Disability Insurance (SDI) benefits are generally not taxable, either on a federal level or on a state level.  In fact, they are never taxable, except when considered to be a substitute for unemployment compensation, and when paid to an individual who is ineligible for Unemployment Insurance (UI) benefits only because of the disability.

    If that is the case, where SDI benefits are received in lieu of UI benefits, then the California Employment Development Department (EDD) will provide the claimant with a Form 1099-G, showing the amount of the taxable benefits (if any).

    Thus, if you don't have a 1099-G indicating that your SDI benefits are taxable, you may safely exclude all of your SDI income from any tax return or form.  For more information on this topic, you can read summary tax guidance provided by the California EDD itself at the following webpage:

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

    (See the FAQ:  Is SDI reportable for tax purposes.)

    Thank you for asking this important question.

    Level 2
    June 1, 2019
    Is that CASDI?
    Level 2
    September 21, 2019

    How come to i can claim sdi 2017

    Level 2
    May 16, 2021

     I got something from you guys saying that you guys owe me from 2016 so I'm following directions to see what's going on

    DawnC
    Level 15
    May 16, 2021

    Who did you get an email from - and about what?    @Krystalgoodloe

     

    Avoid phishing scams and spoofed sites

     

    Phishing emails usually contain messages directing the recipient to a “spoof website”—a bogus version of a legitimate business' website. The messages often appear to be from an organization that the recipient is associated with financially, such as a bank, tax software provider, or the Internal Revenue Service.

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    Level 2
    June 11, 2021

    thanks