Washington Cares and Paid Family and Medical Leave deductions

[kber1]

For residents of Washington State, are the "Washington Cares" and "Paid Family and Medical Leave" automatic paycheck deductions IRS tax deductible for taxpayers who Itemize their deductions? If so, should they be included in Schedule-A line-6?

[AmyC]

Yes. The IRS has ruled this year, that it is an income tax and is deductible on itemized deductions as a state tax. There are several ways to enter the tax.

The easiest is when you enter your W2, box 14 category should be other deductible state tax. This should go to line 5a.

If you choose another method, that is fine, line 6 is still part of the state and local tax section.

Reference: Rev. Rul. 2025-4

[kber1]

Thank you! I would prefer to use line6 in Schedule A. Do you know how that would affect my w2 ?

[AmyC]

 A w2? No, I don't see how that would work. A k-1, yes. Here is a screenshot of how the program calculates line 6 of Sch A.

[kber1]

Thank you again. One last question: in order to deduct both sales taxes and the WA Cares taxes, i am going to use scheduleA line 5a for sales taxes and line6 for the WA Cares taxes. I i assume this is allowed?

[kber1]

Can I amend my 2023 taxes to account for the Washington Cares fund as well? Or is IRS only allowing it 2024 onwards?? Thanks!

[RobertB4444]

Yes, line 6 is fine.

Based on the ruling it looks like it's only for 2024 going forward.  But keep an eye out - that may change.

@kber1 

[kber1]

Thank you. 

[ThomasM125]

Here is a link to IRS ruling 2025-4.

@kber1