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Does Unemployment compensation for paid family leave qualify for the 10,200 exclusion from tax?

Does Unemployment compensation (from California) for paid family leave qualify for the 10,200 exclusion from tax that was granted under the American Rescue Plan?

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5 Comments 5
qbteachmt
Level 15

You are confusing Family Leave and Unemployment. Two completely different things.

You need to know which the taxpayer got. And they could have gotten both, of course.

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George4Tacks
Level 15

I believe the answer is YES. See the third question at https://edd.ca.gov/Unemployment/FAQ_for_1099G.htm

Paid Family Leave (PFL) benefits are considered a type of unemployment compensation and are taxable. Your PFL benefits are taxable and reportable on your federal return only.


Answers are easy. Questions are hard!
qbteachmt
Level 15

That's pretty good mind-reading. 🙂

Family and Sick Leave are employer or third-party coverage, reported on W2 (if you have an employer). The EDD is State, reported on 1099-G.

I don't see where it was described what he/she is looking at.

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sjrcpa
Level 15

George is a Champ at mind reading.

The more I know, the more I don't know.
vpowell
Level 1

George is correct.  In CA, the state provides paid family leave separate from any benefits provided by the employer.  The EDD issues a 1099-G just like with "regular" unemployment benefits, only "Table B" is used.  It's reported the same way as other unemployment benefits and qualifies for the $10,200 credit.