topic PFL in CA, but no 1099G. My company took care of my PFL through their disability admin. I did not get 1099G. Is that all in my W2? in Get your taxes done using TurboTax

PFL in CA, but no 1099G. My company took care of my PFL through their disability admin. I did not get 1099G. Is that all in my W2?

tatianabryner — Sat, 01 Jun 2019 06:53:33 GMT

Yes, under the circumstances you describe, the informatio...

GeoffreyG — Sat, 01 Jun 2019 06:53:34 GMT

Yes, under the circumstances you describe, the information should all be on your W-2.

When Paid Family Leave (PFL) comes from the California Employment Development Department (EDD), it is reported on a Form 1099-G, which you can enter on your federal tax return. The TurboTax California module then knows it is PFL, and subtracts that out of your taxable California income (because California does not tax PFL benefits, while the IRS does).

However, when PFL is administered by an employer's Voluntary Plan Disability Insurance (VPDI), it is sometimes reported to you on a separate W-2 and included in your federal wages. If this is the case with you, on the TurboTax federal W-2 entry screen there is a question where you can indicate this is a PFL W-2. The TurboTax California module then knows this is PFL, and subtracts that out of your taxable California income (again, because California does not tax PFL benefits).

If you do not have a separate W-2 for PFL, or your W-2 does not indicate what amount of your federal taxable wages are attributable to PFL, then you may want to call (or visit) your employer's payroll or human resources office and ask them. While the PFL will still be taxable by the federal government, PFL will be tax-exempt in California.

You may also find the information found in the following 2-page California EDD pamphlet helpful:

http://www.edd.ca.gov/pdf_pub_ctr/de8714cf.pdf

Thank you for asking this question.

Re: Yes, under the circumstances you describe, the informatio...

Alshan — Wed, 24 Jun 2020 03:20:15 GMT

In W2 from employer Wages in Box 1 include PFL (paternity family leave) amount but are not included in Box 16 California state taxable wages.

Amount on W-2 box 16 have no affect on CA tax amount!

According to CA form 540 State wages calculated based on Box 1 minus adjustments.

Should I enter PFL amount calculated as amount in Box 1 minus amount in Box 16 in the TurboTax Form "Paid Family leave (PFL) income in California" to get PFL adjustments?

If I enter 0 there is NO adjustment

Re: Yes, under the circumstances you describe, the informatio...

BillM223 — Sat, 27 Jun 2020 16:39:40 GMT

To reinforce GeoffreyG's excellent answer, let me say that when the PFL screen appears (as Alshan shows), TurboTax prefills in the box with the total of the W-2 Wages amount.

HOWEVER, you must change that number to be the amount of the Wages that came from either the employer's insurance company (in this case, this is probably on a separate W-2, so the entire Wages amount if tax-exempt PFL), or if the W-2 is from your employer, you should enter ONLY the amount in Wages that came from the employer's VPDI - which may well be zero.

If none of the Wages amount was VPDI but was other employer compensation (like accrued vacation days, sick leave, etc.), then you must enter zero, because TurboTax wants ONLY the amount of the Wages box that was actual PFL, not to what too many people casually refer to PFL when it is not.