Do I have to pay taxes on my EDD SDI pregnancy benefits?
Just found out I'm expecting (yay!) and planning ahead for maternity leave next spring. I'm trying to budget exactly how much money I'll have coming in during my time off. My HR department mentioned I can file for SDI for pregnancy, but I'm confused about whether these benefits are taxable income. Do I need to set aside a portion for taxes, or are pregnancy disability payments tax-free? Also, does anyone know if I'll get a tax form for this at the end of the year? Thanks in advance for any help!
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Omar Zaki
Congrats on your pregnancy! Yes, SDI benefits ARE taxable at the federal level but NOT at the state level in California. So you'll need to set aside money for federal taxes, but you won't pay CA state taxes on these benefits. When I was on pregnancy disability last year, I opted to have federal taxes withheld (it's optional). You'll get a 1099-G form in January 2026 that shows your total benefit amount for tax filing.
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Freya Andersen
AuthorThank you so much! Do you remember what percentage they withhold for federal taxes if I choose that option? I want to make sure I budget correctly.
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Yi Ke
@Freya Andersen you were given the wrong answer. SDI is NOT federally taxed. PFL bonding, however, is
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CosmicCrusader
my sister just had her baby and she said she didnt have to pay any taxes on her SDI checks, so maybe the other person is wrong?? idk for sure tho
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Omar Zaki
Your sister might not have had to PAY taxes if her total income for the year was low enough, but SDI benefits are definitely reportable as federal taxable income. This is clearly stated on the EDD website. She still should have received a 1099-G form even if she didn't end up owing taxes on it.
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Yi Ke
@Omar Zaki you would ve'received a 1099G only for the PFL portion. Unless you have a special case, your SDI is for sure NOT subject to federal tax
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Chloe Robinson
JUST A WARNING!!!! When I was on pregnancy disability in 2024, I chose NOT to have taxes withheld and REGRETTED IT COMPLETELY!!!! Had to pay a big chunk at tax time AND got hit with an underpayment penalty!!! DEFINITELY have them withhold federal taxes - it's only 10% but at least it's something. The EDD website even has a form for this (DE 4P) that you should submit with your claim!!!!
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Freya Andersen
AuthorOof, that sounds painful! Thanks for the warning - I definitely don't want a big tax bill surprise. I'll look into that DE 4P form.
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Diego Flores
To clarify what others have said: 1. California SDI benefits for pregnancy are subject to federal income tax, but exempt from California state income tax. 2. Federal tax withholding is optional. If you choose to have taxes withheld, it's a flat 10% rate. 3. You'll receive a Form 1099-G by January 31 of the following year showing your total benefits received. 4. You can request federal tax withholding when you initially file your claim or later by submitting the DE 4P form. I also recommend calculating how your maternity leave might impact your overall tax situation. Sometimes being on reduced income for part of the year puts you in a lower tax bracket.
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Freya Andersen
AuthorThis is super helpful and clear, thank you! That's a good point about potentially dropping into a lower tax bracket - I hadn't thought about that angle.
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Anastasia Kozlov
When I was pregnant with my first baby I had such a horrible time trying to get through to EDD about my pregnancy claim! I kept calling for literally weeks and couldn't get anyone to answer basic questions like this one. Eventually I found this service called Claimyr (claimyr.com) that got me connected to an actual EDD agent in like 20 minutes after I'd been trying for days on my own. They have a video demo at https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd that shows how it works. Definitely worth it for the peace of mind!
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Sean Flanagan
does this actually work? i've been trying to reach someone at EDD for like a week about my disability claim
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Anastasia Kozlov
Yes! It definitely worked for me. I was super skeptical at first but I was desperate after being on hold and disconnected so many times. They connected me to an EDD agent who answered all my questions about tax withholding and how much I'd be receiving during my pregnancy leave.
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Zara Mirza
One thing nobody mentioned yet - if you're transitioning from SDI pregnancy disability to Paid Family Leave (PFL) after birth, the tax situation is exactly the same for both. Federal taxable, CA exempt. Just mentioning it because most new moms use both programs back-to-back and it can get confusing!
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Freya Andersen
AuthorThanks for bringing this up! Yes, I'm planning to take the full 4 weeks before my due date on SDI, then the delivery/recovery time, and then transition to PFL. Good to know the tax situation stays consistent between the two programs.
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NebulaNinja
This is totally random but I just went back to work after my maternity leave and my cat keeps sitting on my work laptop during zoom meetings lol... but anyway about taxes, I had the 10% withheld and it wasn't enough, still owed a bit at tax time. Just sharing my experience!
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Omar Zaki
That's actually a good point - 10% withholding might not be enough depending on your tax bracket. I ended up setting aside an additional 5% of my benefits just to be safe.
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CaptainAwesome
There's some conflicting information in this thread, so I wanted to clarify based on the official EDD guidance: California SDI benefits (including pregnancy disability) ARE subject to federal income tax but NOT California state income tax. This is different from some other disability benefits that might be federally tax-exempt. For budgeting purposes, I'd recommend having the 10% federal tax withheld when you file your claim - you can request this on the DE 4P form. Even if 10% isn't quite enough (depending on your tax bracket), it's better than owing a large amount at tax time. You can always make quarterly estimated payments if needed. Also, keep good records of your benefit payments throughout the year since you'll need them for tax filing even before you receive your 1099-G form in January!
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