Paid Family Leave income is taxable on the federal income tax return.
Whether or not it is taxable in your state depends on a number of factors. In California, for example, PFL is taxable unless:
- it is on a 1099-G from the California Employment Development Department (EDD) or
- it is on a W-2 from the insurance company that covers your employer's PFL policy
Note that "PFL" that appears on your employer's W-2 along with your normal pay is not considered to be PFL in California and is therefore taxable.
If you are referring to another state, please come back to us and tell us.
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