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Get your taxes done using TurboTax
First, what state are you in?
Second, Code J means that the pay is not taxable on the federal level, which makes me wonder if your employer filled out the W-2 correctly, as Paid Family Leave is treated on the federal return the same as unemployment, which is also taxable.
Here are the instructions for your employer in completing your W-2: "Code J—Nontaxable sick pay. Show any sick pay that was paid by a third party and was not includible in income (and not shown in boxes 1, 3, and 5) because the employee contributed to the sick pay plan. Do not include nontaxable disability payments made directly by a state." See W-2 Instructions.
The way your W-2 is coded, the PFL will not be taxable. I recommend you take this to your HR department and ask them if you have PFL or truly non-taxable sick pay because you paid the premiums for the insurance contract with after-tax dollars. If they realize that they made a mistake, ask for a corrected W-2, because you don't want to file with this W-2.
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