My wife and I each took parental leave in 2023, and we both reside in California. On my W-2 form, Box 14 lists 'PFL' and 'VPDI', whereas my wife's W-2 form only indicates 'VPDI'.
I have two questions regarding how to categorize these entries on our tax returns,especially considering the specific tax treatments of PFL in California:
Categorizing PFL: Under which category should I include 'PFL'? Considering that PFL benefits in California are taxable at the federal level but not at the state level, would it be appropriate to classify it as 'Emergency Paid Family Leave', or is there a more accurate category I should use?
Indicating Paid Family Leave in Uncommon Situations: When using tax software (like TurboTax) and reaching the section that inquires about 'uncommon situations', should I select the option for 'Paid Family Leave'?
