I just received a notice from California tax board that says I owe state tax on the deduction I claimed in 2017 for paid family leave. This was filed through turbotax so I assumed it was accurate. I also researched online and everywhere says PFL benefits are taxable only at the federal level. So what am I missing?
Update: below are quotes from EDD website. Could it be that this rule was different before 2018?
Why are my Paid Family Leave benefits included as taxable compensation? 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.