Based on the new IRS PFML guidance issued in Revenue Ruling 2025-4, my wife and I are eligible to exclude some of our Massachusetts PFML Medical Leave benefits found on MA 1099-G from our taxable income, based on the percentage of employee contributions.
Since this is a brand new change, how can we go about reporting this on our 2024 return?
Should we report the net taxable PFML benefit amount on Schedule 1, line 7 without any justification? Or perhaps report the full 1099-G amount and then show the reduction as an adjustment to income?
