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March 18, 2025
Question

Washington Cares and Paid Family and Medical Leave deductions

  • March 18, 2025
  • 2 replies
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For residents of Washington State, are the "Washington Cares" and "Paid Family and Medical Leave" automatic paycheck deductions IRS tax deductible for taxpayers who Itemize their deductions? If so, should they be included in Schedule-A line-6?

2 replies

AmyC
Employee
March 19, 2025

Yes. The IRS has ruled this year, that it is an income tax and is deductible on itemized deductions as a state tax. There are several ways to enter the tax.

The easiest is when you enter your W2, box 14 category should be other deductible state tax. This should go to line 5a.

If you choose another method, that is fine, line 6 is still part of the state and local tax section.

 

Reference: Rev. Rul. 2025-4

 

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kber1Author
March 19, 2025

Thank you! I would prefer to use line6 in Schedule A. Do you know how that would affect my w2 ?

AmyC
Employee
March 19, 2025

 A w2? No, I don't see how that would work. A k-1, yes. Here is a screenshot of how the program calculates line 6 of Sch A.

 

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March 26, 2025

Yes, line 6 is fine.

 

Based on the ruling it looks like it's only for 2024 going forward.  But keep an eye out - that may change.

 

@kber1 

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kber1Author
March 27, 2025

Thank you. 

March 27, 2025

Here is a link to IRS ruling 2025-4.

 

@kber1 

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