While on paternity leave, I received PFL compensation from EDD. During those 6 weeks, my employer covered the rest of my pay and they continued to cover me through the rest of my leave.
On the question, "Do any of these uncommon situations apply to this W-2?", should I check the box, "Paid family leave - I earned all or part of this income as paid family leave."?
Yes, but only if part of the income on the W-2 was for paid family leave (not sick time). Paid Family Leave (PFL) income is money you receive from your employer, an insurer, or the government while you are away from work for an extended period of time so you can recover from a serious health issue, take care of a seriously ill family member or bond with your newborn or newly adopted child.
In the United States, employers who offer PFL are the exception rather than the rule. PFL is usually only available through larger employers if it is offered at all. A small but growing number of states have enacted PFL legislation. They include California, the District of Columbia, Massachusetts, New Jersey, New York, Rhode Island, and Washington. The National Partnership for Women Families keeps a list of state PFL laws.
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.
We've got instructions on entering your PFL income in TurboTax.
- Where do I report a 1099-G for unemployment or paid family leave?
- Is maternity or parental leave considered paid family leave?
- Is FMLA considered paid family leave?
- Is medical leave or short-term/long-term disability considered paid family leave?
- Is sick pay the same thing as paid family leave?
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Thanks you, @DawnC!
One follow up question. Since our child came at the end of November, 5 of the 6 weeks of EDD and employer-supplemented pay was in 2019, and the rest of the PFL income from my employer was in 2020. Am I right to check that box for both 2019 and 2020 taxes?