Hello,
My FMLA benefits are included in W-2 box1, but they are deducted and different amount appears on box 16 of W-2 as they are not part of state tax.
While filing CA state form 540, line 12 is showing the amount of W-2 box 16, but line 13 is taken from the federal return. The whole CA tax is then calculated using line 13.
Is this correct? If line 13 is used then I will end up paying state tax on FMLA benefits.
