I have this same issue with the CT Paid Family Leave program. Rev Ruling 2025-4 clearly says that payments for medical leave that are 100% funded by employee wages are not taxable. This is the case in Connecticut. The company that issues the 1099-G for the state of Connecticut says they were told to put all of the payments in box one, even if the leave was medical leave, which is clearly incorrect since medical leave should be excluded. It makes no sense to tax funds you receive as medical leave payments after paying into the system with your after tax money...and then they tax it again when they give it back to you?
