The CTPL entry in Box 14 of your W-2 is the total you contributed to the Connecticut Paid Leave program through payroll deductions during the year. The amount is already included in your taxable wages in Boxes 1, 3, and 5, so you don’t subtract it from income again, but it may be deductible on your federal return if you itemize, and Connecticut generally lets residents subtract it on the state return.1Internal Revenue Service. Revenue Ruling 2025-4
What the CTPL Figure Represents
Connecticut Paid Leave is funded entirely by employees. Your employer withholds 0.5% of your gross wages from every paycheck and sends it to the state, and the running total for the year lands in Box 14 under the label CTPL.2CT Paid Leave. Contributions Withholding stops once your earnings for the year reach the Social Security wage base, which is $184,500 for 2026.3Social Security Administration. What Is the Current Maximum Amount of Taxable Earnings for Social Security The most anyone contributes in a year is $922.50. If you earned $60,000 in Connecticut wages, your CTPL figure should be about $300.
Unlike a 401(k) contribution or a pre-tax health insurance premium, CTPL does not reduce the wages reported in Box 1. The IRS treats it as an after-tax withholding, which is why your Box 1 wages already include every dollar you paid in. One formatting change to watch for on 2026 W-2s: the IRS split the old Box 14 into Box 14a and Box 14b, and CTPL now appears in Box 14a.4Internal Revenue Service. 2026 General Instructions for Forms W-2 and W-3 – Section: Box 14a Other
If the number on your W-2 doesn’t match roughly 0.5% of your Connecticut wages, start with your employer’s payroll department. Rounding differences of a few cents are normal; a larger gap usually calls for a corrected W-2 on Form W-2c.
How CTPL Affects Your Federal Return
In Revenue Ruling 2025-4, the IRS confirmed that mandatory employee contributions to state paid leave programs count as state income taxes for federal purposes.1Internal Revenue Service. Revenue Ruling 2025-4 That classification is what lets you deduct the CTPL amount, but only if you itemize deductions on Schedule A rather than taking the standard deduction.5Internal Revenue Service. Instructions for Schedule A (Form 1040)
Where It Goes on Schedule A
CTPL belongs on Schedule A, line 5a, with your Connecticut income tax withholding and other state and local income taxes. The combined total of state and local taxes you deduct is capped. The One Big Beautiful Bill Act raised the SALT cap to $40,000 for most filers ($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 phase down, though never below $10,000.5Internal Revenue Service. Instructions for Schedule A (Form 1040)
The CTPL amount by itself won’t come close to the cap. Even the maximum $922.50 is a sliver of $40,000. The cap tends to bind only once you stack CTPL on top of Connecticut income tax withholding and property taxes, which can happen quickly for higher earners.
Will You Actually Benefit?
For most people, no. The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.6Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments from the One, Big, Beautiful Bill If your itemized deductions, including SALT, mortgage interest, and charitable giving, don’t exceed those figures, the CTPL entry has no effect on your federal tax bill. For a single filer without a mortgage, the standard deduction usually wins, and Box 14 is purely informational.
How CTPL Affects Your Connecticut Return
Connecticut generally lets residents subtract CTPL contributions when calculating state taxable income, so you aren’t paying Connecticut income tax on wages that went straight to the paid leave fund. State marginal rates reach 6.99%, so the subtraction can save anywhere from a few dollars to a few dozen depending on your bracket. The line used for the subtraction on Form CT-1040 can shift between years, so check the current year’s instructions.
If you live in another state but worked in Connecticut, CTPL still comes out of your Connecticut-sourced wages. You’ll file Form CT-1040NR/PY to report the Connecticut earnings, and your home state should give you a credit for income taxes paid to Connecticut on the same wages, which is how most states prevent double taxation of out-of-state income.
Entering CTPL in Tax Software
When TurboTax, H&R Block, or similar software prompts you for Box 14, type CTPL in the description field and enter the dollar amount from your W-2. The program will then ask you to pick a category. Choose the option labeled something like “CT Paid Family Leave,” “Connecticut Family Leave,” or “Other mandatory deductible state or local tax.” That selection routes the amount to Schedule A, line 5a, so it counts toward your SALT deduction if you itemize. Picking “Other (not classified)” won’t trigger an error, but you can lose the deduction without realizing it.
If You Received Paid Leave Benefits During the Year
Box 14 only reports what you paid in. Benefits you received are a separate question, and the answer depends on which type of leave you took.
- Family leave benefits, such as bonding with a new child or caring for a family member, are fully taxable as federal income, and the CT Paid Leave Authority issues a 1099-G.1Internal Revenue Service. Revenue Ruling 2025-4
- Medical leave benefits tied to your own serious health condition are generally not taxable at the federal level to the extent they are funded by employee contributions. Because Connecticut’s program is entirely employee-funded, the authority does not issue a 1099-G for benefits paid solely for your own serious health condition.1Internal Revenue Service. Revenue Ruling 2025-47CT Paid Leave. Frequently Asked Questions
Federal withholding on benefit payments is optional. If you want tax taken out, you submit a W-4 directly to the claims administrator rather than going through your employer.7CT Paid Leave. Frequently Asked Questions Keep your own records of what type of leave you took, since reporting rules are still in a transition period and the 1099-G you receive may not always separate family and medical leave cleanly.