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Is CO FAMLI amount in Box 14 on W-2 deductible on Sch A?

rentaxlanc
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qbteachmt
Level 15

You can google:

co famli tax

and see results, such as:

"Yes, you are correct that "CO Famli" item in box 14 is not tax deductible, so the correct box 14 category is "Other (not classified)". The amount does not reduce taxable income reported in box 1 or box 16."

and:

"FAMLI benefits are not subject to state income tax. Current IRS guidance suggests that state programs like FAMLI are taxed similar to unemployment compensation, which is subject to federal income tax. FAMLI will report to the IRS the amount of FAMLI benefits paid to each claimant during the year."

Typically, and the better example is Disability insurance, when something is deducted after tax as "paid by the employee," the payout of that benefit is not taxed. If something is deducted pre-tax (a benefit) or paid by the employer, the payout is then taxed.

Links:

https://famli.colorado.gov/individuals-and-families/individuals-and-families-faqs

https://www.fisherphillips.com/en/news-insights/colorado-employers-facing-new-paid-family-medical-le...

 

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