What should I put in the "PFL Received from Insurance box" for California?

[needToGetTaxDone]

Hi,

I took Paid Family Leave in year 2023, and on my W-2 box 14, there's an item named "PFL" with a number after it. I notice that the federal wage is higher than the state wage on my W-2, and the difference is exactly the amount of PFL in box 14. 

I talked to my employer and I was told that this PFL is not taxable in California state. 

My question is, when I file my California state tax return, in the box below, should I put the amount of "PFL" in box 14? 

[BillM223]

Your employer is correct that PFL is not taxable in California. HOWEVER, true PFL is paid for by the California EDD (Economic Development Department) through a 1099-G, or by an insurance company engaged by your employer through a separate W-2. Many employers throw what they call "PFL" on the W-2 and it isn't tax-free PFL at all.

Please see "What is Paid Family Leave (PFL)?"

In the course of my tax work, I have seen dozens of taxpayers gets dinged for thousands of dollars in tax for taking what they thought was PFL, the State said it wasn't.

I would encourage to read the link above, then contact the CA EDD to see if they think that what you have received is true EDD.

[needToGetTaxDone]

Thanks for your reply. I checked with my employer, and they told me that although all my PFL came from my employer, EDD reimburse a portion of the payment to my employer. And the "PFL" item in box 14 is "CA PFL", which I believe is the portion that EDD pays indirectly to me. So I assume this is not state taxable? 

[MarilynG1]

When entering your W-2, you can enter the PFL Box 14 amount and choose 'other deductible state or local tax' as the category.

Most Box 14 items are informational only and don't affect your tax return, unless you itemize deductions.

Here's more info on Box 14 PFL and W-2 Box 14 Items. 

@needToGetTaxDone