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My state taxes are asking a value of PFL i received from "insurance company." how do i know that?

 
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BillM223
Expert Alumni

My state taxes are asking a value of PFL i received from "insurance company." how do i know that?

If you are talking about a California state return, please read this answer from TerryA, a TurboTax employee:

 

"When PFL comes from the Calif EDD, it is reported on a 1099-G which you enter in the federal return. TT/Calif then knows it is PFL and subtracts it out of income for you - no further entries need be made for that.

When PFL is administered by an employer's voluntary plan disability insurance (VPDI) it is sometimes reported to you on a separate W-2 and is included in your federal wages. On the federal W-2 entry screen there is a question where you can indicate this is a PFL W-2. TT/Calif will then subtract that federal wage amount from your Calif income but you can enter a different amount if only some of it is qualified PFL from the VPDI provider. If the PFL has been comingled with W-2 Box 1 wages paid by the employer then expect the Calif FTB to deny the exclusion and be prepared to prove to the FTB the PFL exclusion you are entitled to take.

PFL paid by the employer is not excludable - it must be paid from the Calif SDI program or the employer's voluntary plan (VPDI) to be excluded from Calif income."

 

You are seeing this question the in the case that your Wages has PFL in it (this should not happen but does). You should enter the amount of your Wages that your employer tells you come from their insurance company. Make them put it in writing.

 

PFL paid by your employer as a benefit is not tax-free in CA. Please follow the instructions carefully. The State of CA sends out hundreds of letters every year disputing the amount of PFL you actually received, with the result of large tax bills owed to the State.

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