Do I need to file special tax forms for my SDI benefits in 2025?
I received disability benefits for 3 months in 2025 after my back surgery, and now I'm confused about tax filing. Do I need to submit a special form for the disability payments? EDD sent me something called a 1099-G, but I'm not sure if that's what I need or if there's another form specifically for SDI. This is the first time I've been on disability and I don't want to mess up my taxes. The benefits were about $8,200 total if that matters. Any help would be appreciated!
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Connor Rupert
The 1099-G is exactly what you need. EDD reports your disability benefits on this form, and you'll use it when filing your taxes. SDI benefits are typically subject to federal income tax (but not CA state tax). Make sure you report the amount shown on your 1099-G on your federal tax return.
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Sophie Footman
•Thanks! Do I need to attach the actual 1099-G form to my tax return or just report the amount somewhere? Sorry if that's a dumb question, I usually just use TurboTax and it's pretty straightforward.
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Molly Hansen
i got the same form just enter it where it asks about unemployment or other govt benefits in turbotax
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Sophie Footman
•Perfect, that makes it easy. So it goes in the same section as unemployment would? I wasn't sure if disability was treated differently.
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Brady Clean
Wait I thought disability isn't taxable?? I was on SDI for 6 months last year and my tax person told me it wasn't taxable income. Now I'm worried I did something wrong...
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Skylar Neal
•There's a difference between STATE and FEDERAL taxes. California SDI benefits are NOT taxable for California state income tax, but they ARE taxable for federal income tax purposes. So you need to report them on your federal return but not on your CA state return. Your tax person might have been confusing this point or maybe you misunderstood. Either way, check your federal return from last year to make sure the SDI benefits were included there.
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Vincent Bimbach
You definitely need to report it on your taxes! When I was on disability in 2023, I didn't report it because I thought it wasn't taxable (mixed it up with workers comp which IS tax-free). The IRS sent me a lovely letter about my "mistake" and I had to pay both the taxes AND a penalty. Don't make my expensive error!
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Kelsey Chin
•Same thing happened to my brother! The IRS does not play around with this stuff.
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Norah Quay
If you're having trouble reaching someone at EDD to ask tax questions (I was on hold for 3+ hours trying to get mine sorted out), I recommend trying Claimyr (claimyr.com). They got me connected to an EDD agent in about 10 minutes who answered all my tax questions about my disability benefits. They have a video demo showing how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd - saved me a ton of frustration!
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Molly Hansen
•does this actually work? edd never answers when i call
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Skylar Neal
Tax professional here. To clarify for everyone in this thread: 1. Yes, the 1099-G is the correct form for reporting SDI benefits 2. SDI benefits ARE subject to federal income tax 3. SDI benefits are NOT subject to California state income tax 4. You don't need to attach the 1099-G to your return, but keep it with your records 5. In tax software like TurboTax, look for the section about "unemployment or government benefits" to enter this information If your SDI benefits were substantial, you might want to consider if you should have had taxes withheld. For future reference, you can request federal tax withholding on SDI benefits by submitting a DE 4P form to EDD.
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Sophie Footman
•Thank you so much for this clear explanation! I didn't know about the withholding option - I'll definitely remember that if I need disability again in the future.
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Kelsey Chin
Just wondering - did anyone else's 1099-G have an incorrect amount? Mine shows almost $2k more than what I actually received last year and I'm freaking out about having to pay taxes on money I never got!
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Connor Rupert
•You should contact EDD immediately about this. They can issue a corrected 1099-G. In the meantime, don't file your taxes until you get the correct form. You can check your payment history in your SDI Online account to verify the actual amount you received.
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Brady Clean
People are right about the federal vs state tax thing - my bad! I checked my return from last year and my preparer DID include it on my federal but not my state return. Sorry for the confusion! This thread actually helped me understand my own taxes better lol.
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Leo McDonald
my neighbor was saying somethin about how if u were on disability for COVID specifically theres different rules? is that true or was she just confused??
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Skylar Neal
•Your neighbor is probably thinking about Pandemic Unemployment Assistance (PUA), which had different rules during 2020-2021. Regular State Disability Insurance (SDI) benefits, even if your disability was COVID-related, follow the standard tax rules I mentioned above. The COVID-specific programs have ended now anyway.
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