unemployment insurance pay for CA maternity related disability

[lesroches]

Want to ask if unemployment insurance pay for CA maternity related disability is taxable for federal and CA state? 

And from turbo tax, I have not seen the check box either for short term disability leave or unemployment insurance. What should I category it? Have seen the "paid family leave" check box, but this is not 'paid family leave'. The "paid family leave" is another part, which is after maternity short term disability leave.

[MaryK4]

If you received a 1099-G from the state of California for the Disability payments, it is taxable for federal taxes but not California state taxes.  TurboTax will automatically exclude income reported on a  CA 1099-G on the California return.  Once you have recovered from your pregnancy-related disability and your physician/practitioner has said you can return to work, you can file a PFL claim. PFL pays up to eight weeks of benefits to bond with your new child, which once again is reported on a 1099-G if paid by the state fund.

When your physician/practitioner certifies that you are unable to work due to your pregnancy, you can file a DI claim for your pregnancy-related disability and recovery from delivery.  Your physician/practitioner can certify to longer periods during pregnancy and/or after birth if you have a pregnancy-related condition that prevents you from performing your normal or usual job duties.

[lesroches]

Thanks for help with the question!

Actually my question is not in regarding to 1099G from CA, which I have also received, but for the W2 I received from the 3rd party insurer (for the benefits of short term disability insurance that my company purchased for employees), with box 13 "third party sick pay" checked. I input this W2 in TurboTax, but cannot find place to indicate this is for maternity short term disability pay. The only thing I can find in TurboTax is to select the "paid family leave" box after I input the W2. Want to get your advise on whether this income is taxable for Fed & CA respectively, and how to correctly input into TurboTax.

[KrisD15]

The W-2 is reporting third-part sick pay, also referred to as short-term disability. 

The payments are taxable as wages on both the Federal and State returns. 

You have entered the W-2 correctly with "Third party sick pay" checked. There is no option to select short-term disability for that W-2. 

According to the state of California:

WHAT IS THIRD-PARTY SICK PAY? Third-party payers, such as insurance companies or trusts, who pay sick pay in place of wages. These payments are made to employees under a plan established for a participating employer during any period when an employee is absent from work due to illness or injury. These payments are sometimes known as short-term disability payments

Section 931.5 of the Section 931.5 of the California Unemployment Insurance Code (CUIC) (leginfo. legislature.ca.gov/faces/codes.xhtml) provides that third-party sick payments are “wages” for the purpose of reporting Unemployment Insurance (UI) and Employment Training Tax (ETT). These payments are also reportable as Personal Income Tax (PIT) wages, which are wages subject to California PIT. Even though PIT withholding on these wages is not mandatory, the wages are considered taxable income to the recipient and must be reported on the recipient’s California income tax return. Without exception, payments for third-party sick pay are not subject to State Disability Insurance* (SDI).

CA LINK 

[lesroches]

Great! Thanks to clarify it.