How to handle 5830G from State of California

Hello all,

 

In 2017, we had a baby and because of this event there was a w2 sent to us from Insurance company which my employer used for maternity/paternity leave. This w2 had income of $30,962 which turbo tax entered as subtractions on CA 540 on line 7. The question is was turbotax wrong to subtract this on line 7 or Is state wrong on saying this amount should not be subtracted. 

 

These are the values from w2 in question:

Box 1 (Wages): 30,962

Box 2 (fed tax withheld): 5,976

Box 3 (SS wages): 17,553

Box 4 (SS tax withheld): 1,088

Box 5 (medicare tax withheld): 255

Box 13: Third-party sick pay checked

Box 16: (State wages): 24,188

Box 17: (State income tax): 1,604