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Old 05-22-2009, 01:14 PM
 
Location: WA
167 posts, read 517,983 times
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Do you have to pay income tax on Social Security Disability in CA?
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Old 05-22-2009, 02:01 PM
 
Location: Tijuana Exurbs
4,539 posts, read 12,403,081 times
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California taxes income based upon your Federal AGI. Therefore, the level of state taxation of disability benefits would depend on your overall income. There is a formula that determines whether 85% of your benefits are taxable, 50% of your social security is taxable, or none of it is taxable. The portion that is taxable would then be taxed at your 10%, 15%, 25%... etc, federal marginal rate, and your 1%, 2%, 4%, 8%, 9.3%, or 10.3% state marginal rate.
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Old 05-22-2009, 03:24 PM
 
Location: Columbia, California
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No, it is not taxable. But when you turn 65 they will place you on normal Social Security and it is taxable.
My father was on permanent disability since he was 57 for his back. He lives in Morro Bay.
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