BillM223
Expert Alumni

State tax filing

Cause? You mean why did you make the entry that you did that your spouse's W-2 was PFL?

 

Well, two issues: (1) as I noted, the term "Paid Family Leave" is used rather loosely in California. Some of what people call PFL is taxable and some is not, but since people use the same term for both, it's easy to get confused about which PFL is non-taxable in CA.

 

(2) As I noted above, on the input screen, you were asked to enter the amount from the W-2 that was paid by the insurance company. Because TurboTax is usually Do-It-Yourself software, the taxpayer is responsible for all the data entries.

 

If you see an instruction like "enter only the amount paid by the insurance company" and you are not sure what that means, then you need to ask before you file the return. I assume that in this case, the State of California believes that the $6k was paid by your spouse's employer, not an insurance company. Was it?

 

I said "TurboTax is usually Do-It-Yourself software" because TurboTax does offer some services wherein a credentialed tax professional goes through your return with you line by line, and in this case, the tax professional signs your return as the tax preparer of record. In this case, the onus for tax errors would be on TurboTax. But for most users, then onus is on the taxpayer asking questions before the return is submitted.

 

I don't mean to be hard, but DIY means just that: do it yourself. 

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