Paid Family Leave (PFL) benefits are reportable for federal purposes but not state tax purposes. The Employment Development Department (EDD) will provide all claimants with a 1099G form and forward a copy of the 1099G to the IRS. PFL benefits are not taxable or reportable to the California (CA) State Franchise Tax Board.
When you also receive a W2 from your employer that includes PFL you can follow the steps next. When you are completing the CA return TurboTax will bring up a screen for you to enter the amount of the W2 that is PFL. I think it may default to the entire Box 1 amount but you should change that to the PFL amount mentioned on your W2 or the amount you know to be the PFL. That amount will be subtracted from your federal wages on Schedule CA line 7.
