RobertB4444
Expert Alumni

Get your taxes done using TurboTax

No, we still can't.  The IRS has still issued no guidance on this, just like Washington State says.  So you have two options:

 

1- Put the medical leave on your return in "Other Income" and when the system asks for the type of income enter "Washington Medical Leave".  If the IRS issues guidance on these payments that says that they are not taxable you would then file an amended return to get any taxes you paid refunded to you.

 

2- Leave the medical leave off your return and wait to see if the IRS issues guidance saying the payments are taxable. In which case you can amend your return to add the payments that you received back in.

 

I would tend to go with the first option.  Not just because it is safer but because the IRS has historically treated any payments received as replacements for wages that you would have earned as taxable.  I don't know why they haven't answered on this one - they are still very backed up - but I think erring on the side of caution for this would be wise.

 

@Wardjamilla

 

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