is sdi taxable?
While TurboTaxDwayneM's answer may be accurate for most cases, I have to add an important consideration to amend that answer. I have bolded an important phrase in the information cited below. There are circumstances in which your SDI is taxable. SDI benefits are taxable only if paid as a substitute for unemployment insurance (UI) benefits. This could occur if a person was receiving UI benefits and then became disabled.