- quote -

There is one instance when SDI benefits are taxable. If the
recipient is on Unemployment Insurance and becomes disabled,
the SDI is taxable as UI benefits. The Form 1099-G will
show the payments as SDI-UI. The income should be reported
and taxed as regular unemployment benefits.

Linda Dorfmont E.A., CFP, CSA

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- quote -

Thank you for responding. I did find this out and you are
correct.

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- quote -

I have to disagree with this reply as it relates to CA SDI.
Payments from the CA EDD made under the CA SDI program are
tax-free. It doesn't matter whether you itemize your
deductions or take the std deduction.

Dick

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You get to deduct the SDI premiums so any payout is logicly
taxable (like say a conventional IRA)

--
Avrum Lapin avrum223[at]nospam.verizon.net
Upland CA Remove NOSPAM from address

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- quote -

In California employees have to pay for disability insurance
(SDI) so it seems to me it *shouldn't* be taxable. Not to
say that it isn't.

Steve

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"ldbk" <ldbkatwoman[at]aol.com> wrote:

- quote -

Workers' comp is specifically excluded from Federal tax.
Your state mileage may vary.

As for the disability, it depends on who paid for the
coverage. If you contributed nothing after-tax to it, it's
all taxable.

--
Phil Marti
Clarksburg, MD

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ldbk wrote:

- quote -

Worker's compensation is not taxable or reportable. Your
company-subsidizes disability payments are probably fully
taxable on your return. Talk to your Human Relations
department.

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I was on workers compensation and long-term disability
(through my company) all of last year for an industrial
injury. Do these monies need to be recorded as income for
tax purposes?

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