Washington State said they will issue a 1099 G to everyone who has received Paid Leave.
You will need to include this paid leave on your tax return if you file prior to the IRS issuing guidance on this topic. If you file prior to them making their final decision and include it and pay taxes on it then no you would not have any type of penalty. You may get a refund at a later date for the overpayment. If you do not include it and they decide it is taxable, you would be subject to penalty for underpayment.
So you do need to include it in your return when you receive it.
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