State tax filing

As noted above the Paid Family Leave can be reported on a 1099-G sent by the CA EDD or on a W-2 paid but the employer's insurance company.

In the W-2 interview, when you check that this is PFL, I don't believe that TurboTax knows which W-2 is being referred to. Hence, in this case, when you get to the CA interview, TurboTax has to ask for "PFL Income Received from Insurance Company" (which is not taxable in CA).

Unfortunately, the TurboTax interview pre-fills the PFL box with the sum of all the W-2s that apply to that taxpayer, which caused many taxpayers to just hit Enter on the assumption that TurboTax knew what it was doing (The taxpayers really should have read the instructions on the screen more carefully). Thus, these taxpayers who had W-2s that were not PFL wages overstated their CA state income, and they got letters from the state 4 (!) years later.

So, to be clear, on the screen in the CA interview headed, "Paid Family Leave (PFL) Income in California", enter the amount in Box 1 on the W-2 from the insurance company that pays PFL for your employer (if any). This amount will be subtracted from state income.

So, don't be confused. If this is not clear yet, just come back and ask again...