I’m confused on whether Paid Family Leave is taxable or not. I took PFL to bond my newborn. So I’m not sure where that lands?

[BillM223]

Paid Family Leave income is taxable on the federal income tax return. 

Whether or not it is taxable in your state depends on a number of factors. In California, for example, PFL is taxable unless:

• it is on a 1099-G from the California Employment Development Department (EDD) or
• it is on a W-2 from the insurance company that covers your employer's PFL policy

Note that "PFL" that appears on your employer's W-2 along with your normal pay is not considered to be PFL in California and is therefore taxable.

If you are referring to another state, please come back to us and tell us.

[mari_137340]

Okay. I reside in California and received PFL through EDD. Am I still recieving a 1099-G form and is it recommended to input information in my taxes or should I leave that section out completely. @BillM223 

[BillM223]

Yes, you should receive a 1099-G from the EDD. You may be able to get it online by going to the EDD's website.

Yes, enter the 1099-G into your return, because, as I noted above, it is taxable on the federal level.

Then, when you get to the California return, there will be a screen titled "Your Unemployment or Paid Family Leave Doesn't Get Taxed in California". At the bottom of this screen, the last paragraph says that since PFL is not taxed in California, TurboTax has already subtracted the PFL from your state income, and, most importantly, "There's nothing you need to do."

This is the correct outcome.