EDD PFL tax reporting confusion - how to handle maternity leave to PFL transition on 2025 taxes?

You'll need to report both benefits on your taxes. EDD should have sent you a Form 1099-G for each benefit type, showing the total benefits paid and any federal taxes withheld. Both pregnancy disability (SDI) and Paid Family Leave (PFL) are considered taxable income for federal purposes, but they're exempt from California state taxes. Make sure you enter both 1099-G forms separately when filing. And don't forget to check if you had any tax withholding selected when you applied - many people don't realize they need to request withholding and end up with a surprise tax bill.

Thank you! I did get two different 1099-G forms but wasn't sure if I should be combining them somehow. I don't think I selected any withholding when I applied... now I'm worried I'll owe a lot. Do you know roughly what percentage of the benefits I might end up owing for federal taxes?

I just did my taxes after being on mat leave too! it's confusing cuz the pregnancy disability and baby bonding are on diff forms. my accountant said just enter both 1099s exactly as they are. the federal tax part depends on your tax bracket tho. my husband and i owed like $1200 bc i didnt have anything withheld 😫

Oh no, $1200 is a lot! I definitely didn't have anything withheld either. We're probably in a similar bracket since we're dual income. Guess I need to prepare for a hit on our refund. Thanks for sharing your experience!

The EDD system makes this unnecessarily complicated! I went through the same thing last year with disability and PFL after having my son. Here's what I learned:\n\n1. The 1099-G forms show your TOTAL benefits for each program\n2. Report each 1099-G separately on your federal return\n3. These benefits ARE federally taxable but NOT taxable for CA state tax\n4. If you didn't have taxes withheld (most people don't), you'll likely owe federal taxes on these benefits\n5. Your tax rate depends on your total household income and filing status\n\nI'd recommend using tax software that specifically asks about unemployment/state disability insurance benefits or consulting with a tax professional who understands California's specific rules. The tax impact varies widely depending on your other income.

tHiS 💯!! i tried to do mine without help and messed it up, had to amend. they don't make it obvious that the disability and pfl are handled differently!

The way EDD handles taxes is incredibly frustrating. I wasted HOURS trying to get answers from them about how to properly report my maternity and baby bonding benefits. Called repeatedly and couldn't get through to anyone knowledgeable.\n\nFinally used Claimyr (claimyr.com) to get connected to an actual EDD agent in about 15 minutes who confirmed exactly how to handle the tax forms. They have a video demo: https://youtu.be/DOLxZQb92wM?si=6N1iCQ3a8Cdb2Ay5\n\nThe agent explained that while the benefits are reported on separate 1099-Gs, they're both handled the same way for tax purposes. Both federally taxable, both CA exempt. The key is making sure you're categorizing them correctly in your tax software.

Thank you for the suggestion! I've been trying to call EDD with tax questions but the wait times are ridiculous. I might try Claimyr if I can't figure this out with the advice here. Did the agent give you any specific guidance on how the different benefits might affect your refund?

The agent actually walked me through how the benefits would impact my specific situation. Since I hadn't withheld any taxes, she calculated roughly what I'd owe based on my tax bracket. It was super helpful having someone explain it who actually understood both tax implications AND the EDD system. Definitely worth connecting with someone who can look at your specific case.

I STILL HAVEN'T EVEN RECEIVED ONE OF MY 1099-G FORMS!!! Has anyone else had this problem?? I got the one for my disability but nothing for PFL and I've been checking my mail every day. Tax deadline approaching and EDD is useless as usual!!!

You can actually access your 1099-G online through your EDD account! Log in to Benefits Programs Online, then go to UI Online, and there should be a section for

Omg I went thru this exact same thing last year! Wat I learned is you need to enter both 1099-G forms separately in whatever tax software your using (I used TurboTax). The maternity disability is technically SDI (state disability insurance) and the baby bonding is PFL (paid family leave) which is why they send different forms. But the important thing is you DONT pay California state tax on either one, just federal. I didn't have any withholding and ended up owing about 15% to federal.

15% sounds about right for our bracket. That's actually really helpful - I use TurboTax too so I'll make sure to enter them separately. Thanks for sharing your experience!

when i had my daughter in 2023 i was sooo confused about all this too!! my best friend is an accountant and she said the most important thing is that you get BOTH 1099 forms and enter them separately when doing taxes. also make sure you check the box saying they're exempt from state taxes but still count for federal. i found out the hard way that if you dont set up withholding youll owe a chunk at tax time 😩

yessss that's exactly what happened to me too! wish they would make the withholding option more obvious when you apply! felt like a punishment for having a baby lol

Since others have covered the basics about reporting the 1099-G forms, I wanted to add something important: if your total income was significantly lower in 2024 due to being on maternity leave/PFL instead of your regular salary, you might qualify for additional tax credits you wouldn't normally get.\n\nSpecifically, check if you qualify for:\n\n1. Earned Income Tax Credit (both federal and California versions)\n2. Child Tax Credit (with the new baby)\n3. Child and Dependent Care Credit (if you paid for childcare)\n\nThese credits might offset any taxes you owe on the benefits, potentially resulting in a larger refund than expected. A lot of people miss these opportunities because they focus only on the tax liability of the benefits.

That's a really good point I hadn't considered! My income was definitely lower last year because of the leave. I'll make sure to look into these credits when filing. Thank you for the helpful information!

As someone who just went through this exact situation with my 2024 taxes, I can definitely relate to the confusion! Here's what I learned that might help: First, you're right to be confused - the EDD system really doesn't make this clear. You'll get separate 1099-G forms for your pregnancy disability (SDI) and your PFL baby bonding benefits. Don't combine them - report each form separately when filing. The key things to remember: - Both benefits are taxable for federal purposes but exempt from California state tax - If you didn't elect tax withholding (most people don't), you'll likely owe federal taxes - The tax rate depends on your total household income and filing status One thing that helped me was using tax software that specifically handles these California disability/PFL benefits correctly. I used FreeTaxUSA and it walked me through entering each 1099-G form properly. Also, since you had a baby and your income was probably lower due to being on leave, make sure to check if you qualify for additional credits like the Child Tax Credit or Earned Income Tax Credit - these can sometimes offset the taxes owed on benefits. Hope this helps reduce some of the stress! The whole system is needlessly complicated for new parents.

I'm dealing with this same situation right now! Just had my baby in late 2024 and was on disability leave followed by PFL. The tax forms are so confusing - I got two different 1099-G forms and had no idea what to do with them. Reading through everyone's responses here has been incredibly helpful, especially knowing that I need to report them separately and that they're federally taxable but CA exempt. I'm definitely worried about owing taxes since I didn't elect withholding either. Has anyone found a good tax preparer who specifically understands these California EDD benefits? I'm thinking it might be worth paying someone to handle it correctly rather than risk messing it up myself.

I'm going through this exact same situation right now with my 2024 taxes! Had my baby in September and was on pregnancy disability from August through October, then PFL for baby bonding from November through February 2025. The whole tax situation has been so stressful to figure out. What I've learned from my research and talking to a tax preparer is that you absolutely need to report both 1099-G forms separately - don't try to combine them. The pregnancy disability is SDI (State Disability Insurance) and the baby bonding is PFL (Paid Family Leave), which is why EDD issues separate forms even though they feel like one continuous leave to us. I made the same mistake of not electing tax withholding when I applied, so I'm preparing to owe federal taxes on both benefits. My tax preparer estimated I'll owe around 12-15% in federal taxes based on our household income, but the good news is these benefits are completely exempt from California state taxes. One silver lining - since our income was lower in 2024 due to being on leave, we might qualify for tax credits we wouldn't normally get, like an enhanced Child Tax Credit or potentially the Earned Income Tax Credit. These could help offset some of the tax liability from the benefits. Hope this helps! It's frustrating that EDD doesn't make the tax implications clearer when you're already dealing with a new baby and recovery.

I'm currently in this exact situation and feeling so overwhelmed! I was on pregnancy disability from July through September 2024, then switched to PFL for baby bonding through December. Like everyone else, I didn't elect tax withholding because honestly I had no idea what I was doing while dealing with pregnancy complications and then a newborn. Reading through all these responses has been such a lifesaver - I had no clue I needed to report the two 1099-G forms separately or that they'd be federally taxable but CA exempt. I've been dreading doing our taxes because I was so confused about how to handle everything. The estimates people are sharing about owing 12-15% in federal taxes are actually helpful to know, even though it's scary. At least now I can prepare mentally and financially for what we might owe. And the point about potentially qualifying for additional tax credits due to lower income and having a new baby gives me some hope that it won't be as bad as I'm imagining. Has anyone used specific tax software that handles these California EDD benefits well? I'm trying to decide between doing it myself with software or finding a tax preparer who understands this stuff. The idea of messing up the reporting and having to deal with the IRS later terrifies me more than the potential tax bill!

I went through this exact same situation last year and completely understand the confusion! I was on pregnancy disability from June through August 2024, then PFL for bonding through November. Here's what I wish someone had told me upfront: You'll definitely get two separate 1099-G forms - one for SDI (pregnancy disability) and one for PFL (baby bonding). Even though it feels like one continuous leave to you, EDD treats them as completely different benefit programs for tax purposes. The key things that helped me: - Report each 1099-G separately on your federal return (don't combine the amounts) - Both are federally taxable but completely exempt from CA state taxes - Since you didn't elect withholding, expect to owe roughly 12-22% in federal taxes depending on your bracket - The good news: with lower income from being on leave + having a new baby, you might qualify for credits like Child Tax Credit or EITC that could offset some of what you owe I used TurboTax and it handled the EDD benefits correctly once I entered each form separately. The software actually prompted me to double-check that I marked them as CA tax-exempt. One tip: if you're still confused after reading all the advice here, it might be worth the cost to have a tax professional handle it this first time. That way you'll know it's done right and you'll understand the process better for future years. The peace of mind was worth it for me! Don't stress too much - lots of us have been through this exact situation and figured it out. You've got this!

I'm going through this exact same situation right now and this thread has been incredibly helpful! I was on pregnancy disability from September through November 2024, then transitioned to PFL for baby bonding through January 2025. Like everyone else here, I didn't elect tax withholding when I applied because I had no idea it would be necessary. What's been most helpful from reading everyone's experiences is understanding that: - The two 1099-G forms need to be reported separately (not combined) - Both are federally taxable but CA state tax exempt - I should expect to owe around 12-15% in federal taxes based on what others have shared - With lower income from leave + new baby, I might qualify for additional credits I'm planning to use TurboTax since several people mentioned it handles these EDD benefits well and prompts you about the CA exemption. If I get stuck, I might consult with a tax preparer who has experience with SDI/PFL situations. Thank you to everyone who shared their experiences - it's made this whole confusing process feel much more manageable! It's amazing how EDD doesn't make any of this clear when you're already dealing with pregnancy, recovery, and a newborn.

I'm currently dealing with this exact same tax situation after having my baby in October 2024! I was on pregnancy disability from September through November, then switched to PFL for baby bonding through February 2025. Like everyone else here, I had no idea about the tax withholding option when I applied - I was so focused on just getting through the application process while dealing with pregnancy complications. Reading through all these responses has been such a relief! I was panicking about how to handle the two different 1099-G forms I received. Now I understand that I need to report them separately and that they're federally taxable but California exempt. The estimates people are sharing about owing 12-15% in federal taxes are actually helpful for planning, even though it's not what any new parent wants to hear. One question for those who've already filed - did you find that the Child Tax Credit and other credits significantly helped offset the tax liability from the benefits? With our income being lower due to the extended leave and having our first baby, I'm hoping we might qualify for credits we wouldn't normally get. I'm leaning toward using TurboTax based on the positive feedback here about how it handles EDD benefits. Thanks to everyone for sharing their experiences - it's made this whole confusing process feel so much more manageable!