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

[rkhapare]

I live and work in California. Last year I took paternity leave for 4 weeks and received the statements and two W-2 for the PFL. However, I did not receive a form 1099G. The IVR system of EDD told me that it could not find any records using my identification information (SSN, DOB). How should I identify and report/treat the non-taxable portion of PFL paid to me by my employer's insurance on my CA tax return? Should it simply be $0 because I don't have a 1099G? TurboTax auto-populates it to $1453 (which is Box1 amount from one of those W-2's), whereas I calculated it to be $8212 (which appears in Box14 of one of the W-2 as "8212.00 CAPL").

[MarilynG1]

Yes, the Box 1 amount is correct for your California PFL.

Box 14 is informational only, and does not affect your tax return.

Click this link for more info on CA Paid Family Leave.

[rkhapare]

But there are two W-2's that I received from Sedgwick for this period. So, which of the Box1 amounts should be considered as the non-taxable portion of PFL?

[JotikaT2]

You would use the amounts reported in Box 1 of your W-2 form that has the Paid Family Leave Act amount.

The amount of Paid Family Leave Act income is nontaxable income in California.  

However, you would have received a Form 1099-G from the state for the difference between the amount reported on your W-2 and the amount paid to you.

You may need to contact the Employment Development Department at 1-866-401-2849 to request a copy of your Form 1099-G.  This is based upon the information you have provided above.  These amounts are not taxable to the state of California but would have been taxable on your federal return.  

Form 1099-G link to EDD

On your input, I would recommend you verify your input as well.

Make sure you check the box for Paid family leave on the screen which asks "Do any of these uncommon situations apply to this W-2?"

When you have your final numbers and enter them on the state interview section, you will also see an area to adjust your California amount if needed.  This will pull from your W-2 input in the federal interview section.  You would not adjust this amount should you determine a 1099-G Form was issued to you once you receive a copy of that form.

[prdeshpande]

@rkhapare  What you did at the end in this situation? My wife is also in similar situation. https://ttlc.intuit.com/community/state-taxes/discussion/re-how-to-identify-non-taxable-portion-of-p...

Also when you say "received the statements and two W-2 for the PFL". Is something mentioned on W-2 that says this income is during PFL?

Thanks in advance.

[rkhapare]

I did tick the Paid Family Leave option to the uncommon scenarios question but then I entered 0 for the non-taxable amount in my California return since I never received a 1099G. So there was no way for me to verify and/or claim any portion of that amount was indeed non-taxable.

[ReneeM7122]

You are correct, Your California Paid Family Leave benefits are considered taxable income by the IRS, because they are considered as a type a unemployment compensation.  However, for California state tax purposes, the Paid Family Leave income is entirely exempt.  

Please view this thread for a phone number that you can call and more information about what you can do to get a 1099-G.  You can also view your IRS account to see what was reported to the IRS.  It is possible that you were issued a 1099-G but never received it.  

@prdeshpande

[udayakrish]

Hi, 

I also received 2 w2 forms for my maternity leave. Did you find the answer on what to report as PFL while doing state returns ? 

Appreciate your help. 

Thanks

Udaya

[ReneeM7122]

The paid 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.  You should enter the W-2s exactly as they appear.  

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

Adapted from an answer by AmyC

@udayakrish