BillM223
Expert Alumni

Get your taxes done using TurboTax

Are you saying that (1) you received Paid Family Leave, and (2) it was not on a 1099-G issued by the EDD, but was included in your Wages on your W-2? (You made need to confirm with your payroll department that the reason that they subtracted the PFL from state wages is because the PFL amount is actual PFL that qualifies for exclusion in CA).

 

After you enter your W-2 in the federal return, the next screen asks (among a lot of other things) if you received PFL. Check "yes" if your payroll department has confirmed that this was PFL as approved by the state of California.

 

Then, in the CA state interview, you will be asked to enter the amount of Wages that were paid by your company's insurance carrier (because, presumably, your PFL was paid to your employer by their insurance carrier, and your company is just passing it through your W-2 to you). The box is probably already filled in with the value in Box 1 of your W-2.

 

However, what you want to enter in that box is the amount that will reduce your state wages to the amount that appears in box 16 of your W-2. While your federal income will include the PFL amount, your state income should not, so enter in this PFL CA screen, the difference between box 1 and box 16 on your W-2.

 

 

@Mohit

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