Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Not applicable
posted Feb 11, 2025 11:03:35 PM

Paid Family Leave (PFL) Income in California

Hi,

 

I have a quick question regarding how to report the "Paid Family Leave (PFL) Income in California" on TurboTax. Here is a brief summary of my situation.

  • I've received PFL benefits from both the EDD and my employer's insurance company.
  • The EDD benefits were reported on a 1099-G.
  • The insurance company benefits were reported on a separate W-2 with the employer listed as the insurance company. Box 13 on the W-2 has the "Third-party sick pay" box checked.
  • I have also another W-2 with the employer listed as the company I work for. This W-2 form has California SDI information in Box 14.

Here is what I've done on Turbotax so far:

  • Entered the 1099-G form
  • Entered the W-2 form (from the insurance company), and selected "Paid family leave" on the "Let's check for uncommon situations" screen
  • Entered the wages from Box 1 on the W-2 (from the insurance company) into the "Paid Family Leave (PFL) Income in California" section of the state return.

I have two questions:

  • Since the W-2 describes the benefits as sick pay, are they still tax free on my California State Return?
  • Am I correctly reporting by inputting the Box 1 wages from the W-2 form into the "Paid Family Leave (PFL) Income in California" section?

Thanks in advance.

 

0 2 1369
2 Replies
Employee Tax Expert
Feb 12, 2025 10:21:06 AM

1. Yes, the Paid Family Leave reported on the W2 are tax free for California.  

2. Yes, in the California section, you can enter the amount on the W2 with the Paid Family Leave so that TurboTax will subtract and you will not pay tax on it.  Some people do not have separate W2s for the Paid Family Leave so this entry is necessary to be sure the correct amount is subtracted.

Not applicable
Feb 12, 2025 10:30:38 AM

Thank you so much!