@ohshooot
"1) If my W-2 from my employer has an amount marked (VPDI) in Box 14, can i type that into the "PFL" box that decreases my CA tax (increases refund) even if i don't have a W-2 from the insurer?"
No, VDPI is a premium, not PFL.
"2) The amount marked "PFL" in box 14 of my employer W-2 is the exact difference between box 1 and box 16, so does that mean that the california portion of my taxes is calculated from the box 16 number, meaning that PFL amount has already automatically been deducted from the federal income tax basis to create the CA state income tax basis, does this sound right?"
No, but the confusion is understandable. Box 16 on your W-2 (state Wages) prints on line 12 on the 540...and then is never used again on the CA return. Really - look at the form .
PFL is considered a form of unemployment, so it is taxed on the federal return (so should be in Box 1 on the W-2, at least). In some states like California, PFL is not taxed on the state level. So in this understanding, box 16 should be smaller than box 1 by removing the PFL from federal income.
But as I noted, payroll people can put anything in box 16, and it doesn't affect the return.
Because CA taxes HSA contributions, it is common for the Box 1 amount to be net of the HSA exclusion while Box 16 has the HSA contributions (the code W amount in box 12 on the W-2, that is) added back to the Box 1 amount. This is a common reason for the two boxes to vary. However, since Box 16 (line 12 on the 540) is ignored, all the various automatic adjustments on the CA return end up handling it correctly.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
