NY W2 PFL (Paid Family Leave) input to carry to Schedule A

[amacpa]

New York W2 deducts in box 14 "NYSDI" and "NYPFL".

Do both these deductions get entered in the W2 Box 14 input for 'State disability withheld {NY only} ?

If the NYPFL is entered in the 'Other' input, it doesn't carry to Schedule A - income taxes paid.

[Rocky99]

Correct!! and that was my point to Lacerte the last few years -

This year with the SALT limit at $ 40 K it has become an issue

Lacerte advised us to enter on Itemized Deduction list as "Other Taxes" 

But careful as this amount is ADDED when the $ 40 K limit is determined - not good as now we will need to determine which client gets the benefit vs which one is over the $ 40 K SALT limit

A very simple solution would be to add this under the NJ FLI screen (same as they have NJ-NY SDI on one line) 

[Karl]

Woah, thank you for calling this out! I hadn't considered this in light of the new SALT limit. I would put this in the "Tax Idea Exchange." If you do, post the link to it here and more people will see and upvote it.

[amacpa]

My NY tax return doesn't have an NJ return. Best solution (for me), I combined the SDI & PFL in the same box. The only place it might matter, is on  NY form IT-2 (w2 recap), but its all Box 14 so it probable won't matter.

[Karl]

This workaround seems to make the most sense to me.

[MarkG1]

In Lacerte, you can place it in the State Family Leave Insurance (NJ only) input on screen 10, and then source it to federal by putting "N" in the source box. This will produce the desired result.

[amacpa]

thanks for the follow up, however, this is for New York and the W2 input only has an input field for State DI only

[MarkG1]

Perhaps on Screen 25 - list it as an "other taxes", and then under the NY section also on screen 25, place a "-1" to suppress it for NY. This should get it to appear only on Sch. A, though technically on the wrong line, the net effect would be the same. If you want IT-196 to match federal SALT you could also override it in screen 25, though this would result in the NY worksheet to be suppressed. Let me know what your thoughts are on this.

[UMDJeremy]

Just noticed this for the first time with a client and I'm putting in the Disability box and leaving a comment to next year's preparer within that box to put in here. It shows up on the NY IT-2 as State Disability instead of FL but don't think that matters.