I looked at the Publication 525 link you shared but it wasn't very clear regarding this specific type of income. That's probably why WA state doesn't have an answer yet. I could see it going either way. But they didn't send me a 1099-G and then their site says, "based on what we’ve learned from other states with similar programs, we think it is likely that family leave benefits could be taxable and medical leave benefits would not." But as you mentioned, most forms of income are taxable unless it is specifically exempted by law. I didn't see an exemption for this particular type of income listed in the 525 guide.
So I don't really know how to proceed. I obviously don't want to be penalized in the future, but I also don't want to overpay. What are your thoughts?
If I do report it:
Without a 1099-G, where and how would I report the income?
If it is later deemed nontaxable, how long would I have to amend the return to receive a refund?
You also mentioned, "Income that is nontaxable may have to be shown on your tax return but isn’t taxable." Could you please elaborate on that? How/where I would do this?
Thank you so much. I know there are a lot of questions up there and I appreciate your time!!
