In California, Paid Family Leave (“PFL”) provides benefit payments to people who need to take time off work for certain family issues. PFL paid by the California Employment Development Department (EDD) is reported on Form 1099-G, while PFL paid through a Voluntary Plan for Disability Insurance (“VPDI”) is reported on a W-2, either through the employer or a third-party insurer. Generally, PFL is taxable on the federal return, but not taxable to California.
PFL income reported on a 1099-G will automatically be deducted from your California income on Schedule CA.
If you believe that your employer included amounts paid by the State on your Form W-2, contact the employer for an explanation and a corrected W-2, if applicable. An employer should only include Paid Family Leave on a W-2 if it was paid through the employer or their third-party insurer.
See this help article for more information from TurboTax on Paid Family Leave.
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