Is New York Paid Family Leave taxable in New York state (or New Jersey where I live)? i need to file in both states but unclear on how the states treat this income.

[RobertB4444]

New Jersey doesn't tax temporary disability or family leave pay.  That's why it is zeroed out on the W2.  So it is taxable on your federal return but you can leave the zeroes for the state amounts.

@hadi224 

[hadi224]

Hi Robert,

Thank you, this makes sense if the state of NY was not in the picture. But my main question was the following:

Do I need to report the #2 W-2 on my NY nonresident return?

I already filed my taxes and did report that STD insurance W-2 on my NY nonresident return. My thought process was that I would rather NY knows about it than not. In the end, when I looked at both NY and NJ in what I owed or they owed me, the total difference wasn't much between reporting it or not on my my NY nonresident return, so report it I did.

Feel free to chime in if that was the right thing to do or not.

Thanks,
Hadi

[AmyC]

NY does tax PFL so you did the right thing adding it in. 

Reference: Benefits | Paid Family Leave - NY.gov