CA SDI and PFL Tax Question - Had Baby in 2024, Confused About State Disability & Paid Family Leave Taxation
I was on state disability in California from May-August and then switched to paid family leave after having my baby. Anyone know if these benefits are taxable? Getting ready to file taxes and want to make sure I'm not surprised with a huge tax bill.
15 comments
Join the conversation
Freya Larsen
Tax professional here - CA State Disability Insurance (SDI) and Paid Family Leave (PFL) are actually NOT taxable for California state taxes, but they ARE taxable for federal taxes. You should get a Form 1099-G showing the total amount you received. Make sure to include this on your federal return but not on your CA return.
0 coins
Ravi Sharma
•omg thank you! do you know where I can find the 1099-G? I haven't gotten anything in the mail yet 🤔
0 coins
Freya Larsen
•You can log into your EDD account online and download it. They usually mail them out by end of January too.
0 coins
Omar Hassan
•im in the same boat! thanks for asking this question OP, was literally about to post this myself 💯
0 coins
Chloe Taylor
Hey! Just wanted to mention that I've been using taxr.ai to figure out all my tax stuff this year. It's seriously amazing - you can upload your tax docs and it tells you exactly what's taxable and what's not. Cost me $4.99 but saved me so much headache. Here's the link if interested: https://taxr.ai
0 coins
ShadowHunter
•interesting, does it handle state specific stuff like CA disability?
0 coins
Chloe Taylor
•Yes! It knows all the state-specific rules. It even caught that my CA PFL wasn't taxable for state but was for federal - saved me from a mistake!
0 coins
ShadowHunter
•just tried it and WOW 🤯 where has this been all my life? The breakdown was so clear!
0 coins
Diego Ramirez
dont forget to withhold extra from ur regular paychecks when u go back to work... learned that the hard way last year lol 🤡
0 coins
Anastasia Sokolov
My wife just went thru this. Pro tip: if u got any supplemental pay from ur employer during leave make sure to check if taxes were withheld properly. Some companies mess this up.
0 coins
Ravi Sharma
•wait what do you mean? my company paid me a portion during leave too
0 coins
Anastasia Sokolov
•check ur paystubs. sometimes they dont withhold enough taxes on supplemental pay during leave. might wanna put some $ aside just in case
0 coins
Sean O'Connor
its so annoying that we have to pay federal taxes on this tbh. like were just trying to recover/take care of our babies 🤮
0 coins
Zara Ahmed
•fr fr the system is broken
0 coins
StardustSeeker
Congrats on the baby! 🎉 Just went through this myself last year. One thing to watch out for - if you received any benefits in late December 2023, those might show up on your 2024 1099-G even though you already reported them. Also, keep all your documentation because sometimes the EDD amounts don't match what you actually received due to overpayments or adjustments. Better to have everything organized now than scramble later!
0 coins