I have two related questions on CA VPDI benefits, but much
of the 2nd depends on the answer to the first. Here it
1. My wife paid into her company's VPDI instead of CA SDI.
She then received $775 in benefits. Since this is VPDI
instead of SDI paying this amount, is this amount taxable
both to the federal and CA governments? Is it like SDI in
which it's federally taxed, but not state taxed?
2. Actually, there's a bit more to #1 above. By a mixup in
her company's claim processing, she was told to file with
the state for the benefits. The $775 actually came from the
state and we received a 2004 1099-G from CA for this amount.
In February 2005, the state contacted both my wife and her
company about the mixup and the resolution was that her
company would reimburse the state for that amount, in
essence taking over the payout claim. Assuming there is a
*difference* between how SDI and VPDI benefits are taxed
(answer to #1 above), how would this be handled tax-wise,
a. The state paid the benefit in 2004.
b. The state is getting its money back in 2005.
c. The company is paying the benefit in 2005.
d. Get the state to revoke its (or issue a revised) 2004
1099-G and get the equivalent 2004 VPDI benefits tax form,
e. Keep the 2004 state 1099-G, get a new one for 2005 that
revokes this amount and get a 2005 VPDI benefits tax form.
Archived from group: misc>taxes>moderated