sophiaca20
Returning Member

Can I enter the SDI money from Employer's insurance company as PFL to adjust state tax in California?

I received a W2 from the employer's insurance company as short term disability leave benefit after a child's birth.  Is this considered as PFL benefit through employer's voluntary plan and can be exempt from California State tax?  In this W2, there were both federal and state tax withheld.  Can I enter the amount in box 1 as the "Paid Family Leave" from insurance company?

 

In my company's W2, part of the income from the company is PFL.  But it was not separated out as PFL income.  Is it exempt from California state tax?  

 

JotikaT2
Employee Tax Expert

Get your taxes done using TurboTax

The amount of Paid Family Leave Act income is nontaxable income in California.

 

You would use the amounts reported in Box 1 of your W-2 form that has the Paid Family Leave (PFL) amount.

 

(You may need to confirm the amounts with your employer as it sounds like they issued two W-2 forms including PFL. Essentially, you do not want to be taxed twiced for the same income on the federal return.)

 

On your input, I would recommend you verify your input as well.

 

Make sure you check the box for Paid family leave on the screen which asks "Do any of these uncommon situations apply to this W-2?"

 

PFL

 

You will also see an area to adjust your California amount if needed.  This will pull from your W-2 input in the federal interview section.

 

CA input

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sophiaca20
Returning Member

Get your taxes done using TurboTax

The PFL in my W2 was paid by my company and not be my company's insurance company.

 

The second W2 was issued by my company's insurance company but it is not PFL. It is to compensate short term disability leave benefit.

 

Should I include the PFL issued by my company in the "PFL in California" box?  Please note that this PFL was issued by my company and not by my company's insurance company.

 

What about the short term disability leave benefit from my company's insurance company?  I got a W2 for this.  Is this considered as PFL and exempt from California tax