Hi,
Thanks for all the answers. I am in similar situation but with an exception, so wanted to get your response on that.
Based on reading all the responses from TurboTax support team it seems like PFL pay is deductible in state iff:
1) We received 1099-G from state for PFL pay or
2) We received separate W2 from the insurance company with the PFL amount
If any of above doesn't apply then the amount list in employer W2 for PFL is taxable both by Federal and State.
However, I am observing few different things with my wife's W2 and would like to know the advice from TurboTax support team on it.
My wife received "Family Paid Leave" after pregnancy from the company. The amount $X in W2 is listed under Box14 code "FPL" for the total amount she received. Also her State wages, tips Box 16 in W2 has this $X subtracted but it is not subtracted from the Federal Wages,Tips mentioned in Box 1. This tells me $X is taxable under Federal but not under State. To confirm, this W2 is from her employer only. The total FPL amount which she received was actually received from a 3rd party company who did mention about the EDD program. We also received the letter from EDD about the benefit computation which she will be eligible for and her FML pay $X is according to that. My wife has not received any separate 1099-G form as well. So even though $X is included in her employer W2 it seems like this amount is deductible in state (considering we received EDD letter for benefit computation and $X is deducted in W2 from state wages box). I wanted to confirm if my understanding is correct here ? Please advice.
