I have seen different opinions, and everyone seems to think they should pay the taxes on it as taxable income. This is just for the medical leave portion as WA State is not giving out 1099-Gs for it. We have already paid taxes on it because we pay into it - that is a tax - it's coming out of your paycheck. If the IRS hasn't given any advise on this, which I cannot find any, then I would deem it non-taxable income until they come out and say you have to pay taxes on it. I think we give enough money to this corrupt government and you sure as hell can bet they won't give you a refund if they deem it non-taxable without you begging for it!
