Tax Law (Questions About Taxes)/sdi

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Question
I got injured at work so now I am on SDI in the state of California. I was wondering if I am able to claim the SDI payments on my taxes and if not will it affect my Earned Income Tax Credit. I only worked from January through the first half of February before I got injured and have been on disability ever since. So I only made $1000 for the year from work. Am I still eligible for the EITC and would I get my usual amount (5,000+) or am I not eligible anymore.

Answer
Nancy:

It could effect your receipt of EITC.  That will not be known until you receive your W2 at the end of the year.  I am not from California and do not study California law.  Some disability payments are not reported as income and some are depending upon the theory that the disability payments are actually insurance (to make you whole) versus income (work generated) payment.

The treatment of the payment will become obvious when you receive your W2.

John

Tax Law (Questions About Taxes)

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John L. Tidwell

Expertise

Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.

Experience

Over 20 years of field audit experience with a state agency

Organizations
none

Publications
none

Education/Credentials
Degree in Accounting from Falls Business College

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