Thanks for the info on California form 540. The two steps you describe are exactly what I entered in TurboTax. So its nice to hear someone else suggest the same approach.
However there is a discrepancy between the "Important" note in the TurboTax screen that allows the PFL amount to be specified and my W2. This note states: "Don't include PFL income that was paid directly by your employer. This type of income is normal taxable wages.". My PFL was paid by my employer but my W2 excludes the PFL I received from box 16. The payroll department of my employer also tells me that the PFL I received is not taxable by the state of California. So who's right?
