Self employed

MoMoneyMoMoneyMoMoney · ‎March 22, 2025

Thank you Amy!

Very good point about what was on the 1099-MISC: Total Income or Taxable Income?

I just double checked and it is the TOTAL Medical Leave Benefit that I received from Paid Leave Oregon (Including the Federal Tax they withheld. They withheld NO Oregon State Tax).

My interpretation of the ratio is the same as yours, but my employer paid 0% of the premiums.

so in your example : 0% / 100% = 0 and 0 x $20,000 Total Benefit= $0 Taxable benefit.

This agrees with IRS Pub. 525 under Other Compensation (as referenced by Paid Leave Oregon):

Other compensation.

Many other amounts you receive as compensation for sickness or injury aren't taxable. These include the following amounts.

Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include them in your income.

Now the question is how to make it work in Turbo Tax.

I entered the full 1099-MISC as printed from the state of Oregon.

This shows the TOTAL benefit in Box 3 "Other Income"

If I report the total benefit on the 1099-MISC, can I then subtract out the non-taxable portion on Schedule 1/

Part II Adjustments to Income/ Line 24 z "Other adjustments"?

This makes the most sense to me but I am unable to enter anything on that line in TurboTax.

@AmyC