Yes, you get the larger refund from California.
Please see this excellent answer from TurboTax Expert GeoffreyG regarding Paid Family Leave in the State of California.
The bottom line: Enter your W-2 exactly as you received it in TurboTax. You will be taxed at the Federal level, and not taxed at the State level for these benefits.
You should have also received a 1099-G for the same amount? Enter that in the Unemployment section--which simply means the IRS did not require your employer to withhold any taxes but you are still subject to taxes now.
From the left menu>Federal>Wages & Income>Add more income>Unemployment Show More>Unemployment and paid family leave
What is Paid Family Leave (PFL)?
