California state tax with Turbotax Deluxe - Paid Family Leave income in California

Forum|Forum|2 years ago
March 2, 2024
2 replies
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Dear friends in the Turbotax community,

My wife and I have a daughter born in 2023 and both of us have received paid family leave income in 2023. I am at the state filing part of Turbotax Deluxe 2023, the "Paid Family Leave income in California" section. Turbotax noticed that I reported receiving paid family leave on a W-2 form, and it asks me to review my paid family leave income and adjust the amount if needed to reflect the total paid by the employer's insurance company.

Turbotax automatically put $104,490 as the paid family leave income we received from insurance company. I do not think we received that much as paid family leave income. Could you let me know where in the W-2 forms or any forms I can check my paid family leave income, so that I can update the $104,490 that turbotax put down for me?

I am also confused how come Turbotax believe we received that much of the paid family leave income. Is there any form/number that I should doublecheck for my federal tax return?

Thanks a lot!

Bsch4477

Employee

Family leave insurance benefits are subject to federal income tax and to federal rules on reporting income and paying taxes. CA PFL benefits are not subject to California state income tax. Benefits paid directly from the state of California are reported on Form 1099-G.

mulleryiAuthor

Thanks for the reply. The number on 1099-G, box 1 "unemployment compensation-paid family leave" is $12,960. Shall I replace "$104,490" with "$12,960"?

I am also confused how come Turbotax believe we received "$104,490" as paid family leave income. Is there any form/number that I should doublecheck for my federal tax return?

Thanks a lot!

Bsch4477

Employee

Is there anything on your W-2 of that large amount. Your paid leave should reflect your reporting of the 1099-G.

machabelle_28

I think that is #16 on your W2.

MonikaK1

When you enter a W-2 in TurboTax, if you indicate where prompted that some of all of the wages represent paid family leave, the entire amount of the wages from that W-2 will appear in the box in the Paid Family Leave screen in the California return. The instructions on that screen ask you to make any necessary adjustments.

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 and this TurboTax help article for more information.

@mulleryi

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mulleryiAuthor

Thanks all for the responses. I am afraid that I am still a bit confused.

1. Turbotax was asking for "PFL income received from insurance company".

My question:

a. Could anyone let me know how can I figure out if any of my PFL income came from an insurance company? Where on W2 or 1099G and which box shall I be looking at to know if any of my PFL income came from an insurance company?

b. My impression is that all my PFL income came from California Employment Development Department (EDD), and was supported by the California short term disability insurance that was paid and deducted from my paycheck. Is EDD considered an insurance company?

2. How can I found out what number shall be filled into this box?

Earlier response says:

My questions:

It appears to me that if I have received PFL income from an insurance company, the insurance company should issue a W-2 to me. Since I have not received any W-2 from any insurance company yet, does that mean that I did not receive any PFL income from any insurance company? In that case, shall I enter "0" as "PFL income received from insurance company"?

3. It says that

"If your PFL is reported on a W-2, you must enter the amount (if any) that was paid by an insurance company, and not your employer.

If none of the amount was paid by an insurance company, and all of it was paid by your employer, you must enter $0 in the wages box because any amount reported by your employer in box 16 of a W-2 is considered compensation for services or taxable fringe benefits in California."

from the referenced Turbotax webpage below (https://ttlc.intuit.com/turbotax-support/en-us/help-article/worker-benefits/need-know-paid-family-leave-pfl-california/L3hTgwY36_US_en_US?uid=ls22fpcr)

My questions:

a. Again, it is my impression is that all my PFL income came from California EDD, not from my employer. The information from the Turbotax webpage suggests that the PFL income either came from an insurance company, or my employer. Is PFL income from California EDD considered income from my employer, or the PFL income indeed come from California EDD but was later paid (distributed) through my employer?

Thanks a lot!