State Disability Income, or SDI, refers to temporary benefits paid to a California resident unable to work because of a disability not caused by his job. Paid Family Leave, or PFL, also falls under the SDI program. A California employee is eligible for PFL if he needs to take time off to care for a sick family member or new child. Employees are required to pay into the SDI program via paycheck deductions, which may be deducted from federal income taxes. The maximum amount that can be taken from an employee's pay is determined yearly by the state legislature.
Contributions Listed on Schedule A
Your contributions to the SDI program are reported in Box 14, labeled as "Other," on your W-2 statement. To claim a deduction for these contributions, you must file a 1040 tax return and itemize your deductions. Take the number found in Box 14 and transferring it to Section 5, labeled "Taxes You Paid," on Schedule A. Check box "5A" to indicate the deduction is for state income taxes. SDI contributions are characterized as state income taxes because they are deducted from the taxpayer's paycheck. Finish adding the rest of the deductions you wish to claim on the form, then compare your total itemized deductions with the standard deduction. List whichever is greatest on Line 40 of your 1040 form.
- California Employment Development Department: State Disability Insurance (SDI) Tax
- Tax Act: Mandatory State Disability and Unemployment Insurance Contributions
- IRS.gov: W-2, Wage and Tax Statement
- U.S. Tax Center: Deduct Your State Unemployment and Disability Contributions
- IRS.gov: Schedule A (Form 1040), Itemized Deductions
- IRS.gov: Itemized Deductions, Taxes You Paid
- The Law Dictionary: How To Deduct California SDI From Federal Taxes Law Dictionary: How To Deduct California SDI From Federal Taxes
- IRS.gov: Form 1040, U.S. Individual Tax Return
- IRS.gov: Form 1040, U.S. Individual Tax Return
- IRS.gov: Schedule A (Form 1040), Itemized Deductions