Paid Family Leave in CA

[grizzlyhug]

I took leave in 2018.  For maternity leave, my employer processed STD (short term disability) and PPL (paid parental leave) as payment.  To care for seriously ill family member, my employer processed six (business) days (one week + one day) of sick leave.  Can I take all this pay from my employer as CA Paid Family Leave deduction on CA taxes?  

Before giving birth, I was paid by my employer for the leave.  Can I also include this pay as Paid Family Leave for CA taxes?

[TerryA]

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.