MAPFML not calculating

[Bfleisch]

There is a new entry in Box 14 of W2 Called MAPFML which is for paid family leave. This is for Massachusetts ,not sure if other states participate. A worksheet is suppose to be generated so that a determination can be made if an excess was paid and should be refunded. The results are posted in MA Form 1 line 46. TT accepts the amount OK, but does not appear to generate the worksheet. I even put in 10 times the max amount that I could contribute just to see if it would generate the excess refund. It did not. It appears that TT is not doing anything with this amount. I have correctly identified the item with the Box 14 drop down and the description and the amount.

[DMarkM1 · Accepted solution]

You are correct.  TurboTax does not generate a worksheet.  Form W2, Box 14 entries are informational only.  Instead, TurboTax suggests that if you worked more than one job that withheld for MAFML and wages exceeded $132,900 then you should complete the worksheet found in the MA instructions and enter the amount of excess if any from that worksheet in the state interview.  

Effective October 1, 2019, businesses are required to withhold Paid Family and Medical Leave (PFML) contributions from employees and certain independent contractors up to the annual income limit set by the Social Security Administration.

For the 2019 tax year, the income limit is set at $132,900 and the maximum PFML contribution amount for most individuals is $502.36. For a self-employed individual not subject to PFML withholding who opts into PFML, the maximum PFML contribution is $996.75.

If your contribution amount exceeded the limit for the year, you may have an excess paid family leave and medical leave withholding that can qualify for a credit.

Here is worksheet from the MA instructions.

Line 46. Excess Paid Family and Medical Leave Contributions Worksheet

If you are eligible to claim a credit for excess PFML contributions, enter in line 46 the amount of excess PFML contributions as determined by completing the below worksheet.

1. Enter your income as shown on your combined Form W-2s. If greater than $132,900, then enter $132,900 . . . . . . . . . . . . . . .

2. W-2 PFML contribution amount. Multiply line 1 by 0.00378 . . . . . . . . . . . . . . . .

3. Enter the lesser of your 1099-MISC Covered Contractor net income or ($132,900- line 1). If you have a loss, enter 0 . . . . . . .

4. 1099-MISC PFML contribution amount. Multiply line 3 by 0.00378 . . . . . . . . . . . . . . . .

5. Enter the lesser of your self-employed opt-in net income or ($132,900 - (line 1 + line 3)). If you have a loss, enter 0 . . . . . . . . . . . . . . . . . 6. Self-employed opt-in PFML contribution amount. Multiply line 5 by 0.0075 . . . . . . . . . . . . . . . . .

7. Total combined PFML contribution amount. Add lines 2, 4 and 6 . . . . . . . . . . . . . . . . . .

8. Combine actual amounts of PFML contributions shown as withheld on Forms W-2, 1099-MISC and all amounts actually contributed by a self-employed individual that opted in (No single employer can exceed the maximum PFML contribution amount) . . . . . . . . . . . . . . .

9. Excess PFML Contributions withheld. Subtract line 7 from line 8 . . . . . . . . . . . . . . . . . .

Enter total in line 9 on line 46 of Form 1. *If filing a joint return add the amounts on line 9 from each spouse’s worksheet and enter the total, in whole dollars only, on line 46 of Form 1.

[Bfleisch]

Not that this matters to me, but I went to try and enter data into line 46 within TT and it won't let me. It says it is a calculated cell. The calculation I believe comes from the worksheet I mentioned. Because MAPFML was only started very late in the year it is unlikely that anyone would be due an excess reimbursement, but if they did how would one enter it?

[DMarkM1]

First be sure in the federal interview when you entered your W2 with the Family Leave information, that in the follow on questions you select the button for family leave pay.  

In the MA state interview from the summary page click on "Taxes and Credits"  continue to the MA family leave page and answer "yes" for excess.  The next page will prompt you to enter an amount from the worksheet.  Whatever amount you enter will adjust your refund/owed amount.  I

[scanna283]

@DMarkM1 there appears to be an issue for 2023.

My W2 entries for "Box 14 and supplemental statement" are categorized as "Massachusetts Paid Family Medical Leave" 

In the MA state interview from the summary page I clicked on "Taxes and Credits" continued to the MA family leave page and answered "yes" for excess. 

The next page prompted me to enter the "Total PMFL Contribution" and my "Total W-2 Income". 

Selecting Continue, regardless or the values, always produces "You do not have any excess PFML contributions" and there is no way to enter a corrected value.  

[DMarkM1]

Typically, that TurboTax experience is due to entries not meeting the criteria for the worksheet according MA Form 1 instructions (extracted below).  You need to have entered more than one W2 with PMFL withholding and the total W2 income must exceed 160,200.  If there was only employer you would need to contact that employer for reimbursement.  

" W-2 filers: If you worked for two or more Massachusetts businesses that each remitted PFML contributions on your behalf during the 2023 tax year, and the total amount of your combined Massachusetts W-2 wage income exceeded $160,200, you should complete the worksheet)"

...

To be eligible for a credit the total PFML contribution amount remitted on your behalf must exceed $509.44. If only one employer withheld PFML contributions, and your PFML contributions exceeded the proper amount due, you must seek reimbursement from your employer. You are not eligible to claim a credit on line 49."  

[scanna283]

@DMarkM1 we have three W2s in the system: one for me and two for my wife. My withholdings are fine, but my wife's exceed the max withholdings even though she didn't hit the max "Total W2 Income". 

Example: If total W2 income for my wife is $120,000 and the PFML contributions across both W2s is $400, I would expect an excess payment calculation of $18  [$400 - ($120000 * .00318)]

Your saying that the only way the excess calculation kicks in is if the W2 income exceeds $160,200, but the system calculates this field and $160,200 is the maximum value for 2023. 

[DMarkM1]

Yes.  You are correct the maximum W2 wage box is already entered as that is a given requirement.  So in your case what is stopping the worksheet is her total PMFL contribution is less than the maximum.  

According to pages 17-18 (line 49) in the MA form 1 instructions, "To be eligible for a credit the total PFML contribution amount remitted on your behalf must exceed $509.44."

There is no credit available if the contribution does not exceed the maximum limit.