California - Paid Family Leave Insurance PFL Form 1099-G

Paid Family Leave Insurance benefits (PFL) reported on Form 1099-G are taxable on the federal return, but not the California return. They are treated like unemployment compensation.

Per the California Schedule CA Instructions (page 5):

Line 7 – Unemployment Compensation

California excludes unemployment compensation from taxable income. Enter on line 7, column B the amount of unemployment compensation shown in column A.

Paid Family Leave Insurance (PFL) benefits, also known as Family Temporary Disability Insurance. Payments received from the PFL Program are reported on federal Form 1099-G, Certain Government Payments. Enter on line 7, column B the amount of PFL payments shown in column A. For more information, get FTB Pub. 1001.

To enter the PFL benefits from Form 1099-G:

  1. From within your TaxAct® return (Online or Desktop), click Federal
  2. Click Other Income in the Federal Quick Q&A Topics menu to expand the category and then click Unemployment compensation
  3. Click +Add Form 1099-G Unemployment to create a new copy of the form or click Review to review a form already created 
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

Note, the above information pertains to benefits that would not be taxable on the California return. Please understand, if your employer pays the contributions under a voluntary plan, some or all of the benefits may be taxable on the California return. This may be the case if the benefits were reported to you on a Form W-2, rather than a Form 1099-G. Contact your employer for additional information.