Do I need to report EDD SDI benefits on my taxes? Tax question for disability payments

Yes, you need to report your SDI benefits on your taxes, but whether they're taxable depends on your situation. California State Disability Insurance (SDI) benefits are NOT taxable at the state level, but they ARE reportable on your federal tax return. The 1099-G you received shows what was paid to you. However, whether you actually pay federal taxes on your SDI benefits depends on if you or your employer paid the premiums: - If YOU paid the SDI premiums (which is typical for most CA employees who see SDI deductions on their paystubs), then your benefits are NOT federally taxable - If your EMPLOYER paid the premiums without including that amount in your gross income, then the benefits ARE federally taxable Most people in California pay their own SDI premiums through payroll deductions, so the benefits are usually not federally taxable. TurboTax should walk you through this when you enter the 1099-G information.

ur brother is partly right. state disability isnt taxable by CALIFORNIA but the feds might still want their cut. depends who paid the premiums. check ur paystubs. if u see SDI deductions, ur good - not taxable federally either. the 1099 is just documenting what u got paid, doesnt always mean u owe taxes on it.

I was on disability in 2023 and I just put whatever was on my 1099-G into TurboTax and it figured everything out. It asked me if I paid the premiums or if my employer did. No big deal! 👍

When I tried calling EDD about this exact question last tax season, I spent THREE DAYS trying to get through to a human. It was THE WORST. Finally I used Claimyr (claimyr.com) and got connected to an EDD agent in about 20 minutes. They have a video showing how it works: https://youtu.be/1X-mEsLtbmQ?si=1hcSq3KFtCr4oAmd. The agent confirmed that since I paid my own SDI premiums through paycheck deductions (like most people in CA), my disability benefits weren't federally taxable. Saved me a ton of stress!

Here's what you need to know about taxes and SDI: 1. You MUST report the income on your federal return 2. But it's only TAXABLE if your employer paid the premiums 3. The 1099-G is sent regardless of taxability 4. CA doesn't tax SDI benefits at all 5. Keep the 1099-G with your tax records I've been through this myself twice with pregnancy disability leaves. Just tell TurboTax you paid the SDI premiums yourself (assuming you did via paycheck deductions), and it'll handle it correctly.

my tax guy always asks who paid for the sdi premiums. if it was you (taken from ur paycheck) then its not taxable. if work paid it as a benefit then it is. simple as that. most regular jobs take it from ur check so ur probably fine.

The whole tax system is DESIGNED TO CONFUSE US!! Why do they send a 1099-G if it's not taxable?? Just to scare us and make us pay accountants?? I spent $350 on a CPA last year because of the same confusion. The government needs to make this stuff clearer instead of making us waste hours researching basic questions!

I just want to thank everyone for the help! I checked my paystubs and I definitely had SDI deductions, so it sounds like I just need to report the income but it won't be taxed federally. I'm going to get started on my taxes this weekend and will make sure TurboTax knows I paid the premiums myself. Such a relief!

Just went through this exact same situation! I was on SDI for 3 months last year after a car accident and got super confused by the 1099-G too. Here's what I learned: the form is basically just a receipt showing what you received, but like everyone else said, if you paid the SDI premiums yourself (which shows up as a deduction on your paystubs), then it's not federally taxable. I used FreeTaxUSA instead of TurboTax and it asked the same question about who paid the premiums. Ended up not owing anything on the SDI benefits. The key is just being honest about who actually paid those premiums - if it came out of your paycheck, you paid it, not your employer. Hope that helps ease your stress!

Just to add another data point - I was on SDI for 6 weeks last year after knee surgery and had the exact same confusion! The 1099-G really does make it seem scary at first. What helped me was looking at my W-2 from my employer - if you see SDI listed in box 14 or as a separate deduction, that confirms you paid the premiums yourself through payroll deductions. I also called a local VITA (Volunteer Income Tax Assistance) site and they confirmed that most California employees pay their own SDI premiums, so the benefits aren't federally taxable. Just make sure when you're using TurboTax that you answer "I paid the premiums" when it asks about the disability insurance. Good luck with your taxes!

I went through this same exact situation two years ago when I was on SDI for maternity leave! The 1099-G totally freaked me out at first too. Here's what I wish someone had told me upfront: the form is basically just the government's way of documenting what they paid you, but it doesn't automatically mean you owe taxes on it. Since you mentioned you usually use TurboTax, when you get to the section about the 1099-G, it'll specifically ask who paid the SDI premiums. Just look at any old paystub from 2024 - if you see "SDI" or "State Disability" as a deduction, then YOU paid the premiums and the benefits aren't federally taxable. TurboTax is actually pretty good about walking you through this step by step. Don't stress too much about it - sounds like you're in the same boat as most California workers who pay their own SDI through paycheck deductions!

I've been dealing with the same tax confusion after being on SDI for most of 2024 following a workplace injury! Got my 1099-G last week and immediately started panicking about owing taxes. After reading through everyone's responses here, I checked my old paystubs and sure enough - SDI deductions every single pay period. It's such a relief to know that since WE paid the premiums through payroll deductions, the benefits aren't federally taxable. I think the real issue is that EDD should include a simple explanation with the 1099-G form explaining this distinction instead of just sending out a scary-looking tax document with no context. Would save thousands of people the stress and confusion we're all experiencing! Thanks to everyone who shared their experiences - this thread has been more helpful than hours of trying to navigate government websites.