How to find non-taxable portion of PFL on CA return without a 1099G

[sk_4251]

Hello,

I was on child bonding leave last year for 13 weeks here in California. I have now received:

one W-2 from employer;

one W-2 from Sedgwick with CAPL marked in Box 14;

another W-2 from Sedgwick without CAPL.

I am trying to understand what is the PFL amount I received. 

Adding the PFL amount in the four paychecks it comes to the amount mentioned in Box-14.

Isn't that the PFL amount for which there is no CA state tax ?

Couple of posts on this forum have mentioned the PFL amount is mentioned as Box-1 amount, which doesn't seems right to me.

https://ttlc.intuit.com/community/state-taxes/discussion/re-how-to-identify-non-taxable-portion-of-p...

Can someone please help clarify ?

[BillM223]

I think we can ignore your employer's W-2, because it looks like your employer engaged Sedgewick to handle your PFL.

What we need to understand is why you got two W-2s from Sedgewick. Was the latter one a corrected version of the first one? You may have to call Sedgewick to find out why you have two.

"Adding the PFL amount in the four paychecks it comes to the amount mentioned in Box-14." What is the amount in Box 1? I would have thought that it would be the same as Box 14? Also, was this the second of the two W-2s?

If the total of the PFL paid to you is NOT what is in box 1, then what does the amount in Box 1 represent? It shouldn't be Wages, not from Sedgewick (which I assume is the insurance company handling the PFL). This is another good question to ask Sedgewick, what do box 1 and box 14 represent, if not PFL?

Yes, the amount of PFL that you received is tax-free in California, but ONLY if paid by the EDD or by an insurance company contracted by your employer. See this TurboTax Help page.

[sk_4251]

Hello @BillM223 

Thank you for responding.

Sedgwick is the third party company engaged by my employer. There are two W-2's from Sedgwick

1) One W-2 to indicate the CAPL amount paid for 8 weeks.

2) Other W-2 covers the amount paid as benefit for the rest of 5 weeks. (paternity leave at my company is 13 weeks).

I suspect the amount in Box 1 = Box 14 - Medical plan premium pre tax deduction + Group term life insurance.

I am checking this with Sedgwick.

I do not know if I need to consider the amount in Box 1 or Box 14 as my CA PFL.

Please let me know if you have any comments.

Thanks!

[MonikaK1]

As shown in this help article, if the California Paid Family Leave W-2 is from the insurance company, your PFL income is taxable on your federal return but not your California state return. From your last post, it sounds as if the insurance company divided two kinds of qualifying family leave into two Forms W-2.

Here’s how to enter this income in TurboTax:

1. Enter your W-2 info as you normally would in TurboTax–here’s how.
2. On the screen, Let's check for uncommon situations; check the box Paid family leave.
3. When you get to your state taxes, you’ll get to a screen titled Paid Family Leave (PFL) Income in California.
4. Enter the amount of your PFL next to PFL Income Received From Insurance Company.
5. When asked, confirm that I’ve reviewed the above amount and adjusted it, if necessary.