Is Massachusetts PFML tax deductible on line 5a of Schedule A? It is reported in box 14 on W-2. Turbo Tax has not included it in line 5a. How can I make it do it?

[yanko]

This tax is withheld from my earnings along with Federal and State income taxes on my pay stub. As a mandatory local tax it qualified to be included inline 5a on schedule A but TurboTax has not.

[BillM223]

This Massachusetts webpage describes the PFML fee as a "tax", and furthermore that employees in Massachusetts cannot opt out of it, which makes it a Massachusetts tax.

When you entered this amount into Box 14, what Tax Category did you use? MA Paid Family Medical Leave? I would have though that that would have been enough to put it into line 5a on Schedule A.

Please let us know.

[yanko]

Yes, when editing the W-2, I did specify "Paid Massachusetts Medical Leave" (see screenshot), but when examining the final 1040 output, the amount on line 5a included only the total income tax.

Thanks for the response! This is exactly what I thought as well. So do I have to add this as an extra local tax in order to trick TurboTax into doing the right thing?

Yanko

[AmyC]

Your local tax paid could be entered as an additional line on the w2 or entered as additional local tax paid under other taxes.

I recommend: Go to federal > deductions and credits > estimates and other taxes paid > other income taxes > payments for 2018 or a prior year state or local income taxes paid in 2020. Then select locality (bottom selection is Not Listed) and enter the amount.

[yanko]

Yes, one can usually trick TT into doing things correctly, but it worked fine last year, so I wanted to know if something has changed since then, or in any case let TT know that there is a bug this year.

Thanks!

Yanko

[yanko]

Hi - the category I entered was "Massachusetts PFML" which is what is showed as on my W-2.

Last year this was in fact enough for TT to put it in as a deductible tax, but this year it did not. Maybe it is a TT bug that can still be fixed.

[RaifH]

You will want to enter the amount you paid for Massachusetts Paid Family Medical Leave in Box 14 using the category "Other deductible state or local tax". This will correctly route it to the state tax forms and provide an additional state tax if you are itemizing deductions. 

Entering it in Box 14 and using "Massachusetts PFML" does not work because the system considers that payment of medical leave to you is included in your wages, not a deductible state tax collected from you.

[yanko]

Thank you, yes, i can do it manually. I wanted to flag the issue because the behavior of TT is different this year from last year. Last year it listed PFML as a deductible tax automatically.

[ScottT18]

This is still a thing.  Had to go in to the W-2 form to override the Box 14 to "other deductible state or local tax" to appear correctly