It depends on how much other income you have. It may not be taxable.Note: Employees should be encouraged to provide Form IT-2104 to their employers. You can complete the W4S with your estimated adjusted gross income and any income tax withheld to date to determine if withholdings are recommended. Reporting employee contributions on tax Form W-2 using Box 14 – State disability insurance taxes withheld. Social security and Medicare taxes for 2025. The form asks me to specify federal and state income tax withholding. I either elect an amount for each or the insurance company doesn't withhold anything. No federal income tax withholding on disability pay- ments for injuries incurred as a direct result of a ter- rorist attack directed against the United States. State law provides 2 tax benefit programs for senior citizens and persons with disabilities.