The CTPL amount in Box 14 of your W-2 is what you paid into Connecticut Paid Leave during the year through payroll deductions. That figure is already included in your taxable wages in Boxes 1, 3, and 5, so you don’t subtract it from income again. It may, however, count as a deductible state tax on your federal return if you itemize, and Connecticut generally lets residents subtract it when figuring state taxable income.
How the CTPL Number Is Calculated
Every employee at a covered Connecticut employer contributes 0.5% of gross wages to the paid leave fund.1CT Paid Leave. Contributions The whole cost falls on workers; employers don’t chip in. Contributions stop once your wages hit the Social Security wage base, which is $184,500 for 2026.2Social Security Administration. What Is the Current Maximum Amount of Taxable Earnings for Social Security The maximum anyone pays in a year is $922.50.
So if you earned $60,000 in Connecticut wages, your Box 14 CTPL should read $300. Rounding of a few cents is normal. If the number is off by more than that, ask your payroll department to check it, and request a corrected W-2 (Form W-2c) if the withholding was wrong.
One thing CTPL is not: a pretax deduction. Unlike a 401(k) contribution or a health premium, it doesn’t reduce your Box 1 wages. The IRS treats it as after-tax withholding, which is why it sits in Box 14 as information rather than reducing what you’re taxed on.
What CTPL Does on Your Federal Return
In Revenue Ruling 2025-4, the IRS classified mandatory employee contributions to state paid leave programs as state income taxes for federal tax purposes.3Internal Revenue Service. Revenue Ruling 2025-4 That makes your CTPL amount potentially deductible, but only if you itemize on Schedule A.4Internal Revenue Service. Instructions for Schedule A (Form 1040)
If you itemize, CTPL goes on Schedule A, line 5a, along with Connecticut income tax withholding and any other state and local taxes you paid. The total of all state and local taxes hits the SALT cap, which the One Big Beautiful Bill Act raised to $40,000 for most filers, or $20,000 if married filing separately, with 1% annual increases. Taxpayers with modified adjusted gross income above $500,000 ($250,000 if married filing separately) see the cap gradually reduced, though it never drops below $10,000.4Internal Revenue Service. Instructions for Schedule A (Form 1040)
Realistically, $922.50 or less by itself won’t push anyone near the cap. Stacked on top of state income tax withholding and property taxes, though, the cap can bind for higher earners. Add everything up, compare to the limit, and deduct whichever is smaller.
If you take the standard deduction, none of this matters. The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.5Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments from the One, Big, Beautiful Bill When your itemized total doesn’t beat the standard deduction, the Box 14 CTPL entry is purely informational on your federal return.
Connecticut and Nonresident State Returns
Connecticut generally allows residents to subtract CTPL contributions when figuring state taxable income, so you’re not paying Connecticut tax on money that was already routed to the paid leave fund. Connecticut’s marginal rates top out at 6.99%, which sets the ceiling on what the subtraction is worth. Check the current CT-1040 instructions for the exact line, since it can move year to year.
If you live in another state but work in Connecticut, your employer still withholds CTPL from your Connecticut-sourced wages. File a Connecticut nonresident return (CT-1040NR/PY) to report those wages, and claim a credit on your home state’s resident return for taxes paid to Connecticut. That’s how you avoid getting taxed twice on the same income.
Entering CTPL in Tax Software
On the W-2 entry screen in TurboTax, H&R Block, and similar programs, type “CTPL” in the Box 14 description field and enter the dollar amount from your W-2. The software will then ask you to categorize it. Pick “CT Paid Family Leave,” “Connecticut Family Leave,” or “Other mandatory deductible state or local tax,” whichever appears in your program. That routes the amount to Schedule A, line 5a, if you itemize. Choosing “Other (not classified)” or leaving the category blank won’t cause an error, but you may miss the deduction.
Benefits You Received Are a Separate Question
Box 14 shows only what you paid in. If you actually collected paid leave benefits during the year, that money is taxed under different rules that depend on the type of leave.3Internal Revenue Service. Revenue Ruling 2025-4
- Family leave benefits (bonding with a new child, caring for a family member) are fully taxable as federal income, and the CT Paid Leave Authority issues a 1099-G for them.
- Medical leave benefits for your own serious health condition, including pregnancy, are not taxable at the federal level to the extent they trace to employee contributions. Because Connecticut’s program is funded entirely by employees, medical leave benefits should generally be nontaxable federally, and the Authority does not issue a 1099-G for benefits paid solely for your own serious health condition.
Federal tax withholding from benefit payments is optional. If you want it withheld, submit a W-4 directly to the claims administrator; your employer doesn’t handle that.6CT Paid Leave. Frequently Asked Questions
Other Paid Leave Codes You Might See
Worked in more than one state during the year? Other mandatory paid leave programs show up in Box 14 under their own abbreviations, such as MAPFML (Massachusetts), NJFLI (New Jersey), and WAPFML (Washington), among others.7Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3 – Section: Box 14a Other The federal treatment is the same across all of them: mandatory employee contributions count as deductible state taxes if you itemize, subject to the SALT cap.3Internal Revenue Service. Revenue Ruling 2025-4 Rates and benefit rules vary, with employee contribution rates ranging from zero in programs funded entirely by employers to over 1% where paid leave is bundled with disability insurance.