Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 3 years ago

CA EDD benefit for parental bonding?

I used a parental bonding 6 weeks vacation with in a year of birth of my child. During this period i was not paid by employer and was considered vacation with loss of pay. I was compensated for this period by State disability program (SDI/EDD).

I was under the impression that the money i received from state was not taxable and i didnt declare on my 1040.

When i filed taxes for 2015, i made an amendment for 2014 because i had incurred some capital losses. I think i woke up a sleeping gorilla and now i have in my hand a letter sent from IRS saying i owe around 1k in taxes.

No my question is whether the money i received is taxable or not? If not taxable what shoud I provide IRS with. I dont have any letters or any thing from the state.

Please let me know

Thanks

Update:

CA EDD Paid Family Leave

4 Answers

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  • 3 years ago
    Favorite Answer

    A simple google search:

    Per document: www.edd.ca.gov/pdf_pub_ctr/de8714cf.pdf

    It says: PFL benefits are subject to federal income taxes and will be reported to the Internal Revenue Service. Each person receiving PFL benefits will receive a 1099G form to include with his/her federal income tax return. PFL benefits are NOT subject to California income taxes.

    So yes, the money is taxable on your federal income tax return.

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    • A Hunch
      Lv 7
      3 years agoReport

      I totally understand. I just got a letter from CA FTB that says I owe $102 for 2015. I'm not sure if it's correct but for $102, I'm just going to pay it.

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  • 3 years ago

    Your capital losses are irrelevant to the SDI issue. IRS considers Paid Family Leave to be taxable unemployment benefits. I beg to differ because it is an insurance benefit fully paid for by the beneficiary. My son had the same situation and went to Tax Court over the issue. Instead of letting a judge decide, IRS conceded that there was no tax due.

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  • 3 years ago

    What are you talking about?

    Its called Paid Family Leave. Both parents get to take a break from work for upto six weeks during the birth of child which i used it since i didnt have any vacation left at the new employer i was working for.

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  • Judy
    Lv 7
    3 years ago

    yes it is

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