Do private disability benefits from New York Life affect EDD SDI income reporting?

Yes, you have to report it!!! I didn't know this when I was on disability last year and got hit with an overpayment notice for $2,800. They consider ANY disability income as offsetting your state SDI benefits. The EDD computer systems eventually catch up with you, even if they approve it initially.

The previous response isn't completely accurate. Private disability benefits CAN affect your SDI, but it depends on whether you paid the premiums or your employer did. If YOU paid the premiums with after-tax dollars, then the New York Life benefits don't count against your SDI. If your EMPLOYER paid the premiums (which is more common), then yes, you must report it and it will likely reduce your SDI benefits.

I'm currently on disability leave for pregnancy and had the same question last month! Here's what I learned: SDI typically replaces about 60-70% of your income (up to the maximum weekly benefit amount of $1,824 in 2025). If your employer-paid New York Life policy also pays 60%, the two combined would exceed 100% of your normal wages - which isn't allowed under SDI regulations. In my case, my private disability paid 66.7% and EDD basically paid nothing except for a tiny amount. You need to report the private disability on your initial claim form in Section B - "Other Benefits" where it asks about other disability benefits.

The important thing is to be truthful when you apply. EDD will perform a wage audit and will discover if you're receiving other disability benefits. Not reporting it could result in an overpayment determination and potentially penalties for withholding information. I've had to talk with EDD about this issue for numerous clients. When you file, you'll want to call EDD to explain your situation and understand exactly how the benefits will be coordinated. But good luck actually reaching someone - took me 3 days of calling last time.

im on sdi right now for back surgery and have hartford disabilty from work too. u need to know if ur policy is for SHORT term or LONG term disability bc they work diffrently with edd. my std policy had a 30 day waiting period but edd only has 7 days so i got edd for 3 weeks then hartford kicked in after that.

To answer your follow-up question, you likely will receive some SDI even with the private policy, but it will be reduced. The calculation is somewhat complex, but essentially: 1. EDD calculates your full SDI amount based on your base period wages 2. They subtract your New York Life payments from that amount 3. If there's any remainder, that's what you'll receive from EDD For example, if your weekly SDI benefit would normally be $1,300, but you receive $1,000 from New York Life, EDD would pay you the difference of $300 weekly. Also, check if your private policy has a "non-duplication of benefits" clause that may already account for SDI payments. Some private policies automatically reduce their payment by what you're eligible for from state disability.

I just want to say that the whole disability system is RIGGED. We pay into SDI every paycheck but then when we actually need it, they find ways to deny or reduce benefits. And the private insurance companies are even WORSE with their endless paperwork and medical reviews. The system assumes everyone is committing fraud when most of us are just trying to survive while we're sick or injured.

Thank you everyone for all the helpful responses! I'm going to gather all my New York Life policy details and be fully transparent on my SDI application. I'll check about the waiting periods too since that might affect the timing. Sounds like I'll probably get reduced SDI benefits, but that's better than an overpayment notice later. Really appreciate all the insights!

Smart move being transparent from the start! One thing I'd add - make sure to keep detailed records of all your disability payments from New York Life (pay stubs, benefit statements, etc.) because EDD may ask for documentation during their review process. Also, if your foot surgery recovery takes longer than expected and you need to extend your leave, you'll need to update both your private insurer AND EDD about the extended timeline. The coordination can get tricky if your recovery period changes. Good luck with your surgery and recovery!