What do I need to know about Paid Family Leave (PFL) in California?

by TurboTax•103• Updated 3 months ago

Paid family leave (PFL) provides benefit payments to people who need to take time off work for certain family issues. California has unique rules for reporting this income.

To see how to report this in TurboTax, select your situation.

My PFL was paid by the California Employment Development Department (EDD) on Form 1099-G

Your PFL income is taxable on your federal return but not your California state return.

Follow these steps to enter your 1099-G in TurboTax.

TurboTax will automatically exclude the 1099-G from your California income.

My PFL was paid by a Voluntary Plan for Disability Insurance (VPDI) on a W-2 issued by an insurance company

Your PFL income is taxable on your federal return but not your California state return.

Here’s how to enter this income in TurboTax:

Enter your W-2 info as you normally would in TurboTax–here’s how.
On the screen, Let's check for uncommon situations; check the box Paid family leave.
When you get to your state taxes, you’ll get to a screen titled Paid Family Leave (PFL) Income in California.
Enter the amount of your PFL next to PFL Income Received From Insurance Company.
When asked, confirm that I’ve reviewed the above amount and adjusted it, if necessary.

My PFL was paid by my employer on my W-2

Your PFL income is taxable on both your federal and state return.

Here’s how to enter this income in TurboTax:

Enter your W-2 info as you normally would in TurboTax–here’s how.
On the screen, Let's check for uncommon situations; don't check the box Paid family leave.
When you get to your state taxes, you’ll get to a screen titled Paid Family Leave (PFL) Income in California.
Enter $0 next to PFL Income Received From Insurance Company.