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