On this year's New York State W-2 in Box 14 there is "NYPFL" which is for New York Paid Family Leave. What category description should I choose for this box 14 entry?

[GloriaL]

The code that you will need to choose for this situation will be "Other deductible state or local tax"   NYPFL is a deductible state disability tax.  When inputting W-2 info the description drop down list for box 14 doesn't have a listing for this NYPFL.  

@SysSys

[TB23185]

Does the NY PFL get reported anywhere on the NY State Tax Return as Taxes paid???  While I entered it as other mandatory state and local taxes paid on the federal forms, it doesn't show up anywhere on the NYS return.  Shouldn't it show up????

[LenaH · Accepted solution]

No. NYPFL in Box 14 of your W-2 should be listed under the category of Other deductible state or local tax when you are entering your W-2 on the federal screen. If you itemize your deductions, this is deductible on Schedule A of your federal tax return. 

@TB23185

[TB23185]

Why don't we get credit for NY State taxes paid if PFL is really a tax?

[BillM223]

"Why don't we get credit for NY State taxes paid if PFL is really a tax?"

You do. The NYPFL, when properly categorized in Box 14, is carried to line 5a (state and local income taxes) on Schedule A. If the tax is not limited to $10,000 (limit for SALT - state and local taxes) AN if you have enough other deductions to use Itemized Deductions, the Box 14 amount will appear in the total for lines 5a, 5d, 5e, and 7 on Schedule A.

[TB23185]

But I don't get to claim taxes paid to NY on my NY state tax.  I only get to claim my withholding taxes paid??????

[LenaH]

Your state taxes paid (including NYPFL in Box 14) are deductible if you itemize your deductions on Schedule A of your federal tax return. On your New York State return, the state taxes you paid (not the NYPFL in Box 14) are deducted from your tax liability to determine the tax (or refund) due. 

@TB23185

[maglib]

Premium payments for NYPFL must be funded post-tax. NYPFL premium is not eligible for pre-tax treatment under a section 125 cafeteria plan because required contributions for NYPFL are treated as a New York state tax.

https://www.tax.ny.gov/pdf/notices/n17_12.pdf

[jimparrillo]

Thank you!! Why isn't this listed as the 'final resolved answer' in the forum??

[bizmark03]

I have a related question, what if NYPFL is deducted from all my paycehcks, but is not shown in Box 14 on W2. How do I claim the deduction on my NY state taxes?

[AbrahamT]

Either, ask your employer to reissue you another W2 form which will include the NYPFL on that Box 14. Or simply figure out how much the total deduction amount totalled for the whole year and enter it as is there was an amount from your W2. Keep copies of those paystubs for backup in case you ever run into an issue down the road.