2020 Mass Form 1 Instructions were revised February 22, 2021. But, there were not changes to Excess Paid Family Leave. It is listed as a Form 1 Frequent Error, though. To make sure it is being calculated correctly, see the instructions below:
Page 7, column 3:
Line 46 – Excess Paid Family Leave withholding (PFML) is not the amount shown on your Form W-2.
You must use the worksheet for line 46 to see if you qualify and to calculate the excess amount.
Each taxpayer would need to have multiple W-2’s and to have paid PFML greater than $520.51 to qualify. Or, have paid on the gross amount of self-employment income, not the net.
Page 17 PFML Worksheet:
Line 46. Excess Paid Family and Medical Leave Contributions Worksheet If you are eligible to claim a credit for excess PFML contributions, enter in line 46 the amount of excess PFML contributions as determined by completing the below worksheet.
1. Enter your income as shown on your combined Form W-2s. If greater than $137,700, then enter $137,700 . . . . . . . . . . . . . . .
2. W-2 PFML contribution amount. Multiply line 1 by 0.00378 . . . . . . . . . . . . . . . .
3. Enter the lesser of your 1099-MISC worker net income or ($137,700- line 1). If you have a loss, enter 0 . .
4. 1099-MISC PFML contribution amount. Multiply line 3 by 0.00378 . . . . . . . . . . . . . . . .
5. Enter the lesser of your self-employed opt-in net income or ($137,700 - (line 1 + line 3)). If you have a loss, enter 0 . . . . . . . . . . . . . . . . .
6. Self-employed opt-in PFML contribution amount. Multiply line 5 by 0.0075 . . . . . . . . .
7. Total combined PFML contribution amount. Add lines 2, 4 and 6 . . . . . . . . . . . . . . . . . .
8. Combine actual amounts of PFML contributions shown as withheld on Forms W-2, 1099-MISC and all amounts actually contributed by a self-employed individual that opted in (No single employer can exceed the maximum PFML contribution amount) . . . . . . . . . . . . . . .
9. Excess PFML Contributions withheld. If line 8 is equal to or less than line 7, enter zero in line 9.
If line 8 is greater than line 7, subtract line 7 from line 8 and enter difference in line 9 . . . . . . .
Enter total in line 9 on line 46 of Form 1. 2020 Form 1 Instructions 17
*If filing a joint return add the amounts on line 9 from each spouse’s worksheet and enter the total, in whole dollars only, on line 46 of Form 1.
