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California Practitioners: Are EDD disability payments taxable


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Posted

Have new client who's been away for a few years in California.  She had a couple of months of disability payments in 2014 through the EDD Dept. with California.  She said it's not taxable as it's a benefit the State has for them.  I looked up their website and saw where the employee has premiums deducted from their paychecks, thus the reason why the payments wouldn't be taxable.  Just wondering if the State of California also puts up any premium which would make the monthly payments partially taxable income.

 

Thanks!

 

Cathy

Posted

If it is truly disability payments paid via EDD it is state disability insurance payments and therefore not taxable.  She will not get any kind of a form for this money.  If she received a 1099 from EDD than it is more than likely the extended paid family leave and if so is taxable.

 

Hope this helps!

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