@kj1097 I am the person who posted the original question and I can tell you what we ended up doing. After listening to what folks had to say here and also talking with an experienced CPA, we went ahead and reported it as other income and paid the taxes on it. We were advised there could be penalties if they do decide it's taxable and we didn't count it as income. If they do come out and say it's not taxable, then we will have to file an amended return to get the money back. I'm not sure what happens if 3 years go by with still no decision, if we can get the taxes we paid on it back or not at that point. Will have to consult a tax expert if and when the time comes. It's disappointing that there is still no decision one way or the other on the medical leave tax status. To my knowledge, there is no decision yet and I'd be happy to hear if I'm wrong about that.
