How to identify non-taxable portion of PFL on CA return without a 1099G?

Forum|Forum|5 years ago
March 3, 2021
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We live and work in California. Last year my wife took maternity leave for 6 months. She received two W-2 from Sedgwick, which is her employer's agent for maternity leave management. However, she did not receive a form 1099G. The IVR system of EDD told me that it could not find any records using my identification information (SSN, DOB). How should I identify and report/treat the non-taxable portion of PFL paid to me by my employer's insurance on my CA tax return? Should it simply be $0 because I don't have a 1099G? Or should I add box-1 amount from two W-2 and put them as PFL amount in CA state filing page

KathrynG3

Do not adjust or add to the forms as received. Simply report the forms as received, your W-2, and her two W-2's. This should capture all reportable details for the federal and state returns in TurboTax.

You are correct that Paid Family Leave may be reported on a W-2 (from the insurance company) or on Form 1099-G from the State of California. Since you did not receive Form 1099-G, do not enter anything in the 1099-G Paid Family Leave section of TurboTax regarding Paid Family Leave.

See the link below for specifics about completing the State interview. TurboTax will guide you through the necessary reporting requirements.

For more information, see:

Fact Sheet: California Paid pdf edd fact sheet pfl Family Leave (DE 8714CF) Rev. 21 (12-20)

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

prdeshpandeAuthor

Thanks for your reply.

1. So when adding each W-2 in turbotax, there is section with uncommon scenarios. So for my wife's two W-2 should I tick-mark, paid family leave option?

2. Also, when reporting California taxes, they ask paid family leave dollar amount to be exempted from state taxes. What amount should I enter there? If I do point 1 above then Turbotax will automatically add box1 amount from two W-2. Should I make it zero or keep it as it is ?

ReneeM7122

Correct, you should check the Paid Family Leave box in the Uncommon Scenarios area for your wife's W-2. You should enter the Box 1 amount exactly as it appears on your form without changing it. The information is being transferred to the IRS and your tax return should match.