Paid Family Leave (PFL) benefits are considered a type of unemployment compensation and are taxable. Your PFL benefits are taxable and reportable on your federal return only. You will receive a 1099-G tax form in January of the following year you received benefits.
For state taxes, PFL benefit payments are not reportable by California pursuant to Revenue and Taxation Code Section 17083.
State of California Employment Development Department - Paid Family Leave Benefits and Payments FAQs
State of California Employment Development Department - Form 1099-FAQs
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