Do I check the box in Turbotax that says "Paid Family Leave" ?

[mchiesa1]

I was out on maternity leave for part of 2019.  My "Family paid leave" amount is listed on line 14 of my W2.

Do I check the box in Turbotax that says "I earned all or part of this income as paid family leave?  

Line 14 on the W2 states PFL and lists an amount, Turbotax says it does not recognize PFL but don't worry,

employers can put whatever they want in this box.

If I check the box that says " I earned all or part of my income as "Paid family leave", I get a much larger California state refund. 

[KathrynG3]

Yes, you get the larger refund from California.

Please see this excellent answer from TurboTax Expert GeoffreyG regarding Paid Family Leave in the State of California.

The bottom line: Enter your W-2 exactly as you received it in TurboTax. You will be taxed at the Federal level, and not taxed at the State level for these benefits.

You should have also received a 1099-G for the same amount? Enter that in the Unemployment section--which simply means the IRS did not require your employer to withhold any taxes but you are still subject to taxes now.

From the left menu>Federal>Wages & Income>Add more income>Unemployment Show More>Unemployment and paid family leave

What is Paid Family Leave (PFL)?

[mchiesa1]

Thanks for your assistance but I still have an issue with Turbotax. After I fill in all my W2 information, the next screen asks " Do any of these uncommon situations apply to this W2"  One of the checkboxes listed is for "Paid Family Leave". If I check this box, Turbotax lists ALL my W2 wages as Paid Family Leave on my California return and I get a huge state refund.

I did receive form 1099G, it is only for a couple of thousands of dollars. I did enter the information into Turbotax.

If I uncheck the box concerning "Family Paid Leave" on Turbotax, it seems to give me the correct numbers on my California state return. I am a little confused. I do not know if i should check the box.

[KrisD15]

If the family paid leave you are referring to on the W-2 is listed in Box 14, that is your contribution and has no affect on your state or federal returns. You would answer no (uncheck) the selection concerning Family Paid Leave.

The Family Paid Leave you received is listed on the 1099-G. 

[jonsolo1]

I’m having the same issue.  I went through the Federal and all was good. Then when I got to California, it had my full income in the box for “PFL Income Recieved From Insurance Comapany”.  When I adjusted this to zero since I already had my 1099-G info. It reduced my state refund by a lot.  I don’t understand this box and why it was auto filled with my full income.  Is the full income the correct thing for this box?

[AmyC]

@jonsolo1 This year, the software is giving you the biggest refund as you go through and dropping it as you adjust and correct. The family leave is only what is on your unemployment form to get subtracted back off of CA income. The rest, is just regular taxable income.

Here is the official word from CA Paid Family Leave | FTB.ca.gov

[GRACEANDTROYLOMAX]

Same thing is happening to me!  Seems weird that my whole income is autofilled here.  I deleted and restarted the return 3x.    Not sure if I should change to 0, because my PFL is accounted for under the unemployment section.  Turbotax got my hopes up and then dashed them

[MarilynG1]

2GRACEANDTROYLOMAX  If you received a 1099-G for your Unemployment, don't check the box when entering your W-2 that says 'part of this income is for Paid Family Leave'. 

Enter your W-2 just as shown.   Any entries in Box 14 are information from your Employer, and are not calculated in your return. 

Click this link for info on How to Enter a 1099-G for Unemployment or Paid Family Leave.

This link gives info on Box 14 on W-2. 

[lvque]

I'm having this exact issue.

When I get to the CA state return, it's carrying over my entire wages on my W2 as the PFL, and then I get a huge refund. But when I enter "0" (as its not paid for by employer insurance or my employer; but rather the EDD), then my refund goes way down. What to do?

[jonsolo1]

MarylinG1 had the correct answer for me.  You need to go back and uncheck the box that said “this income was paid parental leave”.  Where it said this is an uncommon situation.  Then when you get to California it won’t be there, only your 1099-G info.

[BillM223]

You all may find this re-presentation of the information above of benefit...

Paid Family Leave (PFL) is income that is taxable on the federal return but is non-taxable on the California state return if it

• is paid by the state's Employment Development Department (EDD) and appears on a 1099-G form –OR–
• is paid by an insurance company under a Voluntary Plan for Disability Insurance (VPDI) and reported on a W-2 from the insurance company.

To repeat: PFL is not included in your employer's regular W-2 but on a separate W-2 from the insurer.

Amounts called “PFL” that are paid by your employer and which appear on the W-2 from your employer (see last image below) are taxable both on the federal level and by the state of California.

When you mark a W-2 in TurboTax as being PFL, a screen about PFL appears in the California section of the interview.

**W-2 Interview**

**California Interview**

The amount of wages on the W-2 marked as PFL is displayed so you don't have to look it up, but you are asked enter the amount (if any) that was paid by an insurance company, and not your employer.

If none of the amount was paid by an insurance company but all of it was paid by your employer, then you must enter zero (0) in the wages box on this screen, because any amount reported by your employer in box 16 of a W-2 is considered by California as compensation for services or taxable fringe benefits.

Note that compensation for short-term disability, vacation days, sick leave, and other employer benefits are not considered to be tax-free PFL.

*****

What if taxpayer gets the 1099-G from the EDD? Do they report it and how?

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.

[nd24]

so let's say if I get both the 1099-G from state govt. and also a W2 from an insurer, then I need to file both on the return? and

a) mark/check the insurer W2 with the PFL option after entering the details?

b) un-check my employers W2 for the PFL option?

c) file the 1099-G details under un-employement income section?

[KrisD15]

To clarify,

how is the Family Leave reported on your W2? (what box on each W2)

Is the amount on the W2 DIFFERENT than what is on the 1099-G?

(Were you paid by the state and also by an insurer?)

Did your employer give you "Covid-related" Sick and or family leave? 

If yes, was this paid separately from the insurer and State?

[nd24]

I got a 1099-G from goverment for UC-PFL. I also got a W2 from an insurer w/ a description of "3rd party sick pay" in box14. This W2 is different from my employer W2.

The first part of the maternity time off was covered partly by CA-SDI and then the remaining part by an insurance firm used by the employer. The amounts in the 1099G and W2 are different.

[DianeW777]

Yes you will file the 1099-G for the paid family leave using the instructions below:

• Where do I report Paid Family Leave on Form 1099-G?

If you W-2 from your employer does not include any paid family leave then you should deselect that.  Then with the W-2 you received from the third party insurer you should indicate paid family leave.  See the image below.