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Get your taxes done using TurboTax
You may need to adjust the federal first due to a new ruling in January.
Benefits from Paid Leave are taxable according to the percentage paid by the employer. Your w2 should not include the portion you paid for federal or state. The IRS announced it in January and the forms may have already been created, with the full amount. See The IRS guidance.
Your employer paid 40% minimum up to all of it. You state that you had money withheld so that % part of the amount is not taxable. Does your w2 show the full amount received or a portion of it? You may need a corrected w2.
The same is true for OR taxability. See Paid Leave Taxability
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March 13, 2025
12:34 PM