Do I check the box in Turbotax that says "Paid Family Leave" ?

Forum|Forum|6 years ago
February 4, 2020
3 replies
36 views

I was out on maternity leave for part of 2019. My "Family paid leave" amount is listed on line 14 of my W2.

Do I check the box in Turbotax that says "I earned all or part of this income as paid family leave?

Line 14 on the W2 states PFL and lists an amount, Turbotax says it does not recognize PFL but don't worry,

employers can put whatever they want in this box.

If I check the box that says " I earned all or part of my income as "Paid family leave", I get a much larger California state refund.

Tax Advice

KathrynG3

Level 14

Yes, you get the larger refund from California.

Please see this excellent answer from TurboTax Expert GeoffreyG regarding Paid Family Leave in the State of California.

The bottom line: Enter your W-2 exactly as you received it in TurboTax. You will be taxed at the Federal level, and not taxed at the State level for these benefits.

You should have also received a 1099-G for the same amount? Enter that in the Unemployment section--which simply means the IRS did not require your employer to withhold any taxes but you are still subject to taxes now.

From the left menu>Federal>Wages & Income>Add more income>Unemployment Show More>Unemployment and paid family leave

What is Paid Family Leave (PFL)?

mchiesa1Author

Level 2

Thanks for your assistance but I still have an issue with Turbotax. After I fill in all my W2 information, the next screen asks " Do any of these uncommon situations apply to this W2" One of the checkboxes listed is for "Paid Family Leave". If I check this box, Turbotax lists ALL my W2 wages as Paid Family Leave on my California return and I get a huge state refund.

I did receive form 1099G, it is only for a couple of thousands of dollars. I did enter the information into Turbotax.

If I uncheck the box concerning "Family Paid Leave" on Turbotax, it seems to give me the correct numbers on my California state return. I am a little confused. I do not know if i should check the box.

KrisD15

Level 15

If the family paid leave you are referring to on the W-2 is listed in Box 14, that is your contribution and has no affect on your state or federal returns. You would answer no (uncheck) the selection concerning Family Paid Leave.

The Family Paid Leave you received is listed on the 1099-G.

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jonsolo1

Level 2

I’m having the same issue. I went through the Federal and all was good. Then when I got to California, it had my full income in the box for “PFL Income Recieved From Insurance Comapany”. When I adjusted this to zero since I already had my 1099-G info. It reduced my state refund by a lot. I don’t understand this box and why it was auto filled with my full income. Is the full income the correct thing for this box?

AmyC

Level 15

@jonsolo1 This year, the software is giving you the biggest refund as you go through and dropping it as you adjust and correct. The family leave is only what is on your unemployment form to get subtracted back off of CA income. The rest, is just regular taxable income.

Here is the official word from CA Paid Family Leave | FTB.ca.gov

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ProPublicaWasRight

Level 2

It sounds like instead of adding the confusing Paid Family Leave checkbox at the end of the W-2, it should ask up front whether or not the W-2 is a Paid Family Leave income, as opposed to paid family leave reported on a 1099G.