My wife's paycheck shows she contributed more than $1K to Oregon's Paid Leave last year. She also took some medical leave and received a 1099-MISC that reflected the paid leave as Other income and the state and federal withholding. TurboTax instructs us on how to input the 1099 info but i can't figure out where we can input the $1K contributions to Paid Leave that were withheld from her paycheck. That's gotta count for something as Oregon's Paid Leave requires employees to contribute 60 percent to the program.
I see the IRS recently issued a ruling on this -- it can't be possible that they we would not get to claim that contribution against the benefit in some way.
IRS: Amounts paid to employees as medical leave benefits that are attributable to the employee’s contribution (including employer pick-up of employee contributions) are excluded from the employee’s gross income under § 104(a)(3) and are neither wages for federal employment tax purposes nor treated as sick pay.
The 1099-MISC is clearly counting the money she received in medical leave from the state as income.
Please please help me figure this one out!
