Paid Family Leave (PFL) Income in California - Still very confused

[rogertn]

Got a W-2 and selected the box that says Paid family leave - I earned all or part of this income as paid family leave. While preparing my California State return, there is a question that says Paid Family Leave (PFL) Income in California. The value brought was from my W-2 Box 1 wages which I know it is wrong. 

I received a 1099-G form and there is value on Box 1 which I think should be the amount I would inform under 'PFL Income Received from Insurance Company', but it says "Also, don't include PFL income reported on a 1099-G".

I'm very confused and can't find any suitable answers here in the community. Lots of people having the same questions.

Does any of the Turbotax Tax Experts know?! 

[MaryK4]

Can you clarify if the income on your W2 was paid family leave through an insurance company?  In general, in California, your employer can pay into the state Paid Family Leave (in which case it would be reported on the 1099-G) or a private insurer (short-term disability insurance and family leave, known as a Voluntary Plan- which is reported on your W2.  The screen above does not want the 1099-G amount because TurboTax is programmed to recognize and subtract it from California income.  When it is reported on a W-2, it is not always identifiable or combined with regular wages so this screen is asking you to verify amounts reported on a W-2 so that is can be properly subtracted from California income. Paid Family Leave should not be reported on BOTH a W-2 and a 1099-G except in rare cases.  

[rogertn]

My company paid part of my PFL and EDD paid the other part which is what is being reported on 1099-G I believe.

My W-2 has Box 14 Other California State Disability Insurance (CASDI)

[MaryK4]

The Box 14 amount is usually the amount of premiums tha were withheld from your pay for the premiums paid to the EDD (California) was 1.1% up to $145,600 ($1,601.60).  If the Box 14 amount is 1.1% of your Box 5 amount (up to $1,601.60) it is the premiums paid, not the amount you received for SDI.  For Box 14, it is usually labeled STD or 3rd party sick pay.  @rogertn 

[rogertn]

Right. Box 14 amount is 1.1% = the premiums paid

So what is the amount I should put on 'PFL Income Received from Insurance Company'?

1099-G form Box 1 amount ?

[MaryK4]

You can leave the Income Received from Insurance Company <BLANK>.   Your Paid Family Leave is only on the 1099-G so you do not have to enter anything on the screen you have above because Turbo Tax will automatically move the amount from the federal return.  This is the way it is reported (1099-G) most of the time.  @rogertn

[rogertn]

My W-2 has 'nothing' about PFL so how will Turbo Tax "automatically move the amount from the federal return"?

How does it know the amount since it has no idea of how much EDD paid and what is on form 1099-G ?

[Cynthiad66]

You will enter the form 1099-G onto TurboTax.  Your state will handle the reporting of an employee's PFL benefits. Report employee contributions to state-mandated PFL on Form W-2 using Box 14, “Other.” The State Insurance Fund reports paid family leave benefits and any federal income taxes withheld on Form 1099-G, Certain Government Payments.

Family leave insurance benefits are subject to federal income tax and to federal rules on reporting income and paying taxes. CA PFL benefits are not subject to California state income tax. Benefits paid directly from the state of California are reported on Form 1099-G. 

If you feel your W-2 is incorrect, then you should contact employer for verification and perhaps a corrected W-2.

[rogertn]

W-2 is correct. Nothing wrong with it.

"You will enter the form 1099-G onto TurboTax" - how?

And then what will I see at "Income Received from Insurance Company" when doing the above?

[AbrahamT]

Here's what you are going to do

In the search bar in the upper right hand corner, type in 1099g

then jump to 1099g

which will take you to this screen

then next, enter the payer information, then next the amount of the unemployment compensation

which will seamlessly flow through to line 7 on Sch 1 as Unemployment compensation and then to form

1040, Line 8 Other income from Sch 1 line 10.

Lots of luck!

[rogertn]

When I do what you described I see something different

When I click yes this is what I see

It did not take me to the screen you showed

[BrittanyS]

Instead of using the jump to link, try these steps in TurboTax online:

1. Click Wage and Income
2. Scroll down to Unemployment Government benefits listed on 1099-G and click show more
3. Click Start next to Unemployment and paid family leave
4. Go through the interview questions for the 1099-G you received

If using TurboTax Desktop, follow these steps

1. Click Personal Income
2. Click Choose what I work on
3. Scroll down to Unemployment and click start next to unemployment and paid family leave
4. Answer the interview questions as they pertain to your 1099-G

@rogertn