Family Leave

[Dinosaurzrule]

How do you answer the question when turbo tax asks if you taken paid family leave under the following circumstances:

Took leave for bonding with newborn child but used vacation and sick time for the leave.   Nothing shows on the W2 regarding this. 

[BillM223]

Paid Family Leave has a specific definition. Too often, the term is bandied about but really doesn't apply.

In California, the following is true:

Paid Family Leave (PFL) is income that is taxable on the federal return but is non-taxable on the California state return if it

• is paid by the state's Employment Development Department (EDD) and appears on a 1099-G form –OR–
• is paid by an insurance company under a Voluntary Plan for Disability Insurance (VPDI) and reported on a W-2 from the insurance company.

To repeat: PFL is not included in your employer's regular W-2 but on a separate W-2 from the insurer.

Amounts called “PFL” that are paid by your employer and which appear on the W-2 from your employer (see last image below) are taxable both on the federal level and by the state of California.

When you mark a W-2 in TurboTax as being PFL, a screen about PFL appears in the California section of the interview.

**W-2 Interview**

**California Interview**

The amount of wages on the W-2 marked as PFL is displayed so you don't have to look it up, but you are asked enter the amount (if any) that was paid by an insurance company, and not your employer.

If none of the amount was paid by an insurance company but all of it was paid by your employer, then you must enter zero (0) in the wages box on this screen, because any amount reported by your employer in box 16 of a W-2 is considered by California as compensation for services or taxable fringe benefits.

Note that compensation for short-term disability, vacation days, sick leave, and other employer benefits are not considered to be tax-free PFL.

If you are referring to another state (like New York), come back and tell us which state.

[Dinosaurzrule]

Thank you for responding.  

Since vacation and sick time were used for bonding leave then does that mean its NOT considered Paid family leave?  Therefore I don’t check the paid family leave box on turbo tax?

Did not receive any payment from a insurance company  (I don’t have that kind of insurance).  W2 does not indicate anything about family leave.  Did not receive 1099G for this either.

Did not receive any payment from EDD either.    Just went on family leave for bonding and used vacation and sick time.

state is California 

[BillM223]

"Since vacation and sick time were used for bonding leave then does that mean its NOT considered Paid family leave? "

No, "compensation for short-term disability, vacation days, sick leave, and other employer benefits are not considered to be tax-free PFL." So this "PFL" is not really PFL for purposes of being tax-free income in the state of California.

[Dinosaurzrule]

“No” meaning it’s not considered paid family leave? 

Sorry I should have phrased the question better

[Dinosaurzrule]

I’m just trying to figure out if  I check the box on turbo tax indicating paid family leave was taken.  

based on what you said it doesn’t sound like I would check that box for my situation. Therefore it’s not considered paid family leave. 

Am I right?

[HelenC12]

No, it's not Paid Family Leave (PFL). PFL is generally reported on Form 1099-G. If you didn't get a 1099-G form, it's probably not PFL. If you're still in doubt, contact your HR department for clarification.

Paid Family Leave is different than paid time off like sick pay. For example, a new mother working at a company that does not offer PFL, might still take maternity leave based on accrued sick days. This pay falls under paid time off, and it is taxed differently than pay from PFL.