I opted to have state and federal taxes taken out of my weekly medical leave payments and, without an option to enter any taxes already paid on the 1099-MISC income, following these instructions would have added the total amount of my medical leave to my taxable income without accounting for taxes already paid. Going through the 1099-G menu is a little confusing, but it does allow for a 1099-MISC to be filed with the option to enter any state or federal taxes already deducted. In my case, this increased my eventual return by ~1k compared to filing via the 'Less Common Income' route outlined here.
Obviously everyones situation is different, just thought id share what my experience ended up being.
