You should have a Form 1099-G, not a 1099-MISC for your Paid Family Leave. Paid Family Leave (PFL) income is money you receive from your employer, an insurer, or the government while you are away from work for an extended period of time so you can recover from a serious health issue, take care of a seriously ill family member, or bond with your newborn or newly adopted child.
In the United States, employers who offer PFL are the exception rather than the rule. PFL is usually only available through larger employers, if it is offered at all. A small but growing number of states have enacted PFL legislation. They include California, Connecticut, the District of Columbia, Massachusetts, New Jersey, New York, Rhode Island, Oregon, and Washington. The National Partnership for Women Families keeps a list of state PFL laws.
Paid Family Leave is different than paid time off like sick pay. For example, a new mother working at a company that does not offer PFL, might still take maternity leave based on accrued sick days. This pay falls under paid time off, and it is taxed differently than pay from PFL.
Unemployment compensation and paid family leave are entered in the same place:
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Open or continue your tax return.
- Search for 1099-G and select the Jump to link at the top of the search results.
- On the Did you receive unemployment or paid family leave benefits in 2020? screen, answer Yes.
- Follow the onscreen instructions to enter your 1099-G information.
If you have a 1099-MISC instead of a 1099-G, the income may not be paid family leave and should be reported elsewhere. Typically, companies that offer paid medical leave or disability do so through a third-party insurer. You may receive a separate W-2 from that insurer to report the PFL income or you may see the PFL reported as third-party sick pay on your regular, company-issued W-2.
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