Hi,
I am in the same situation where I have received CT paid leave for my own serious health condition. According to the IRS guidance this leave should be non-taxable because all the cost is paid for by me with a 0.5% deduction from my wages after tax. However, I was sent a 1099G with the leave benefit listed in box 1 as "unemployment". Even though according to the state FAQ site I should not receive a 1099G for these benefits.
Because of this conflict I contacted the company administering the benefit and was told that even though the benefit for my own serious health condition is not taxable the company is still issuing 1099Gs due to the extension provided by the IRS in notice 2026-6 providing states and employers time to configure their systems to abide by the new rules in IRS 2025-4. Therefore, my real question is how I can enter the amount on this 1099G as non-taxable. When I enter this 1099G and flag it as "This payment is for Paid Family Leave or State Disability Insurance" it is still adding it as taxable income and I am not provided with any way to mark it as non-taxable income. I also do not see any other place in the application to enter it as non-taxable income.
Please advise how I can, manually or otherwise, remove the amount on this 1099G from my taxable income in the application.
Thank you
