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where can I find PFL income received from insurance company

 
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1 Reply
MonikaK1
Employee Tax Expert

where can I find PFL income received from insurance company

If an insurance company paid you Paid Family Leave, it may be reported on Form 1099-MISC. Contact the company if they paid you directly and you didn't receive a form.

 

To enter Form 1099-MISC, in TurboTax Online:

 

  1. Go to Wages & Income
  2. Scroll down the screen until you see Other Common Income and click Show more
  3. Choose the Start on the 1099-MISC line
  4. Enter the info from your form into the corresponding boxes
    • If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17

Answer the interview questions for this one-time payment:

 

  • Does one of these uncommon situations apply?, Check None of these apply and Continue
  • Did the __  involve work that's like your main job?, Check, No, it didn't involve work like my main job and Continue
  • How often did you get income for __?. I got it in 2022 and Continue,
  • Did the __ involve an intent to earn money, Check, No, it didn't involve an intent to earn money., Continue

 

If you are in California, please review the following:

 

In California, Paid Family Leave (“PFL”) provides benefit payments to people who need to take time off work for certain family issues.  PFL paid by the California Employment Development Department (EDD) is reported on Form 1099-G, while PFL paid through a Voluntary Plan for Disability Insurance (“VPDI”) is reported on a W-2, either through the employer or a third-party insurer.  Generally, PFL is taxable on the federal return, but not taxable in California.  

 

The amount TurboTax shows in the California interview for PFL, asking if you need to edit it, is generally because the user checked a box in completing the W-2 in the Federal section indicating that some or all of the W-2 was attributable to Paid Family Leave.

 

If you indicate in the Federal section that some or all of the W-2 is attributable to PFL, TurboTax displays a PFL adjustment screen in the California interview, showing the total wages from the W-2 marked by the user as containing PFL and asking the user to review and adjust the amount as needed. The screen also instructs, “Don’t include PFL income reported on a 1099-G. This will automatically be deducted from your California income.”

 

If you got a W-2 from an insurance company for PFL, then you do subtract it from California wages. If, however, your employer just paid regular wages in your W-2, then you don't subtract it from California wages and you should remove it from the amount in the California PFL screen.

 

Any PFL reported on a Form 1099-G will automatically be deducted from your California income. Don't deduct it separately on the screen where you deduct PFL from an insurance company or you will get a double deduction. Also, don't deduct regular W-2 wages as PFL.

 

See this California EDD webpage for more information.

 

California regularly audits returns for this issue.

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