topic Re: Third-party sick pay California in State tax filing

Third-party sick pay California

fabi — Fri, 31 Jan 2020 21:09:04 GMT

I received a W2 from an insurer because I went on maternity leave last year. I followed the instructions on here but I'm confused because my W2 has the box 1 filled but also has box 12 and 13. It does not have boxes 16,17,18. What's the tax category in box 14 in TurboTax? Is this taxable in CA? In summary:

Box 1 – Wages is NOT BLANK.
Box 12 has Code J with an amount $700 less than Box 1.
Box 13 – Nontaxable sick pay is checked.
Box 14 - Third Party sick pay and amount from Box 1

Thank you!

Re: Third-party sick pay California

AmyC — Fri, 07 Feb 2020 02:36:34 GMT

Paid family leave is not taxable in CA so all the state information is blank.

Code J in Box 12 is nontaxable sick pay.

Box 14 is other information, which in your case is just more repetition.

All together, you will have $700 of taxed wages and the rest will be non-taxed sick pay.

Re: Third-party sick pay California

victai010509 — Tue, 24 Mar 2020 19:36:14 GMT

I was on maternity leave in 2019 and received W2 from the insurance company, with box 13 third party sick pay checked, 14 as 100%, and the wages are the same for Fed as well as California. Is this considered paid family leave and not taxable in California? My company paid for few weeks of paid maternity leave (included in my W2), are any of these taxable (Fed and California)?

Thank you

Vee

Re: Third-party sick pay California

DavidD66 — Tue, 24 Mar 2020 19:51:06 GMT

Yes. It is taxable income, that's why it is reported on a W-2.

Re: Third-party sick pay California

victai010509 — Tue, 24 Mar 2020 20:00:50 GMT

thanks, but for California paid family leave is not taxable right?

Re: Third-party sick pay California

JohnB5677 — Tue, 24 Mar 2020 21:46:16 GMT

PFL wages are subject to federal income tax, but not Social Security and Medicare taxes, or federal unemployment tax.

PFL benefits are not taxable or reportable to the California State Franchise Tax Board.