Does anybody know if they have determined whether to tax the WA PFML for the medical portion. The details are in this thread, but WA State sends out a 1099-G only for paid FAMILY leave, not MEDICAL leave because the IRS will not tell them (or anybody) if it will be taxable. I collected paid medical leave in 2021 and I am trying to determine if I should report it as other income and pay FWH on it or not. Couple of questions I have may help me out:
- WA state has indicated they will not send out a 1099-G for paid medical leave, does that mean they are not reporting it to the IRS?
- If I do not report it and it turns out to be taxable, will there still be fines/penalties even though the only reason I would not report it is because they will not tell us whether it is taxable or not? Is there is time limit for them to decide, i.e. after 3 years it is too late for them to go back and try to collect it?
- If I do report it and they decide it is not taxable, will I need to file an amended return to get the money back?
I appreciate any advice or from people that may have had this same situation last year and how you handled it. Very confusing when the IRS will not say if it is taxable or not.
Thanks!
