Maternity benefit - Paid family leave without 1099...
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Level 1

Maternity benefit - Paid family leave without 1099G

Hi,

My spouse received a W2 from Lincoln insurance company for the benefit during her maternity leave. However she didn't get a 1099-G. The W2 has wages/taxes paid as well as a separate amount in box 12a under category J. I believe this is Non-taxable sick pay.

 

While adding this W2 in Turbo Tax, there is a checkbox "Paid family leave - I earned all or part of this income as paid family leave." Does this need to be checked ? If it is checked , does the entire W2 income be considered non-taxable for California tax reporting or just the amount under box 12a code J become non-taxable ?

 

Also is it common to get paid family leave without receiving 1099-G, but with only insurance's W2 ?

4 Replies
Employee Tax Expert

Maternity benefit - Paid family leave without 1099G

Yes. You should check the box for Paid Family Leave if the income reported on the W-2 is attributable to such.

 

You will need a copy of the 1099-G to file. You can request a copy of your Form 1099-G by calling the EDD’s Interactive Voice Response system at 1-866-401-2849 and following the instructions. The Interactive Voice Response system is available 24 hours a day, 7 days a week. A copy of your Form 1099-G will be mailed to you within five business days.

 

Your California Paid Family Leave benefits you received (such as being out on Maternity Leave) are considered taxable income by the IRS, because they consider Paid Family Leave a type a unemployment compensation.  However, for California state tax purposes, the Paid Family Leave income is entirely exempt.

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Level 1

Maternity benefit - Paid family leave without 1099G

Hi, Thanks for the reply. Looks like only box 12 a category J (sick-pay) should be non-taxable. However if I check that PFL box, turbotax seems to consider the entire W2 income as non-taxable. Is that correct ?

Employee Tax Expert

Maternity benefit - Paid family leave without 1099G

If the state paid the benefit, you would receive a 1099-G. 

Your benefits were paid through a third party. 

How much is taxable depends on who paid the policy, the employer, employee, or both. 

I would GUESS that they both paid and her portion of non-taxable benefit is in Box 12. 

If there are wages listed in box 1, they are taxable. 

What makes you say that TurboTax is considering this as non-taxable? Is the amount listed on your 1040?

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Level 1

Maternity benefit - Paid family leave without 1099G

Hi, 

I have the same question as the original poster. The reason it seems like Turbo Tax is treating all of my W2 (not just the family leave part) as not taxable is because when I click on that button, it seems to give me a refund that's equal to about 10% of my total wages as the CA state refund estimated amount. 

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