topic Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN? in Get your taxes done using TurboTax

I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

tlove765 — Fri, 29 Jan 2021 23:39:56 GMT

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

DawnC — Fri, 29 Jan 2021 23:54:54 GMT

You should have a Form 1099-G, not a 1099-MISC for your Paid Family Leave. Paid Family Leave (PFL) income is money you receive from your employer, an insurer, or the government while you are away from work for an extended period of time so you can recover from a serious health issue, take care of a seriously ill family member, or bond with your newborn or newly adopted child.

In the United States, employers who offer PFL are the exception rather than the rule. PFL is usually only available through larger employers, if it is offered at all. A small but growing number of states have enacted PFL legislation. They include California, Connecticut, the District of Columbia, Massachusetts, New Jersey, New York, Rhode Island, Oregon, and Washington. The National Partnership for Women Families keeps a list of state PFL laws.

Paid Family Leave is different than paid time off like sick pay. For example, a new mother working at a company that does not offer PFL, might still take maternity leave based on accrued sick days. This pay falls under paid time off, and it is taxed differently than pay from PFL.

Unemployment compensation and paid family leave are entered in the same place:

Open or continue your tax return.
Search for 1099-G and select the Jump to link at the top of the search results.
On the Did you receive unemployment or paid family leave benefits in 2020? screen, answer Yes.
Follow the onscreen instructions to enter your 1099-G information.

If you have a 1099-MISC instead of a 1099-G, the income may not be paid family leave and should be reported elsewhere. Typically, companies that offer paid medical leave or disability do so through a third-party insurer. You may receive a separate W-2 from that insurer to report the PFL income or you may see the PFL reported as third-party sick pay on your regular, company-issued W-2.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

karenrr — Sat, 04 Feb 2023 19:37:05 GMT

I have the same issue. I also received a W2, but that was for a claim entirely paid within 2022. The payment on the 1099-MISC was for 2022 payments on a claim opened in 2021. I know where to enter the W2, but entering the 1099 drops me from a $200 return to a $400 payment (approximately). What am I doing wrong? Should I enter this as a 1099-G? It was paid by a third party insurer, but is MA PFMLA.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

JamesG1 — Sun, 05 Feb 2023 14:48:29 GMT

Report this as 1099 income that is not self-employment income.

Follow the steps below to report income on an IRS Form 1099-MISC.

Select Federal from the left side menu.
Click on Wages & Income.
Scroll down to Other Common Income. Click Show more.
Click Start / Revisit to the right of 1099-MISC.
Enter 'paid family leave' under Describe the reason.
Select 'None of these apply' at the screen Does one of these uncommon situations apply?
Select 'No' at the screen Did the income involve work.
Select 'No' at the screen Did the income involve an intent to earn money?

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

@karenrr

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

jaxcobree — Mon, 17 Apr 2023 20:50:19 GMT

How did you end up handling this? I have the same situation, recieved a 1099-misc for MA pfml through a third party insurer.. Did not receiveba 1099-G.

I entered the 1099-misc and I'm ready to hit submit, but I feel like I'm still not sure I did it correctly.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

karenrr — Mon, 17 Apr 2023 20:54:39 GMT

I ended up treating it like a 1099-G. I found some vague references that implied that was the correct way to do it. It filed ok with no issues, and cost me less than 1099-MISC would have. Hope this helps.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

karenrr — Mon, 17 Apr 2023 20:56:34 GMT

Looks like JamesG1 might have the correct steps in his February post.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

kunicorn — Sat, 02 Mar 2024 23:34:34 GMT

I believe the 2024 turbotax software has a bug and now it does not work for anyone trying to put in paid family leave with a 1099-misc form.

Previously this post said there should be these question in the 1099-misc section but 2024 version these two question does not show up.

Select 'No' at the screen Did the income involve work.
Select 'No' at the screen Did the income involve an intent to earn money?

It's treating like we own a business and asking us all these question about owning a business which is not correct.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

MonikaK1 — Sun, 03 Mar 2024 22:31:19 GMT

To enter Form 1099-MISC received instead of a W-2 for Paid Family Leave, in TurboTax Online:

Go to Wages & Income
Scroll down the screen until you see Other Common Income and click Show more
Choose the Start on the 1099-MISC line
Enter the info from your form into the corresponding boxes
- If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17
- Click Continue

Answer the interview questions for this one-time payment:

Does one of these uncommon situations apply?, Check None of these apply and Continue
Did the __ involve work that's like your main job?, Check, No, it didn't involve work like my main job and Continue
How often did you get income for __?. I got it in 2023 and Continue,
Did the __ involve an intent to earn money, Check, No, it didn't involve an intent to earn money., Continue

If you enter the 1099-MISC following these steps, you will see the questions about work and the intent to make money.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

Scwaltham — Sun, 17 Mar 2024 19:02:59 GMT

When I fill out earning from1099-misc, for family medical leave, the TurboTax fills out Schedule C, which seems to be unrelated. How can I avoid this schedule C?

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

Scwaltham — Sun, 17 Mar 2024 19:07:05 GMT

Thanks. But TurboTax is filling out schedule c and asking for unrelated questions for business and flagging it. What do I do?

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

John B72 — Sun, 24 Mar 2024 23:57:36 GMT

It appears there is no correct answer to this issue except to 1) Submit a Schedule C or 2) Enter the 1099-MISC as if it were a 1099-G.
This is not good Turbotax!!!

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

MonikaK1 — Mon, 25 Mar 2024 16:54:10 GMT

Do not enter your information as a 1099-G unless you received a 1099-G. These forms may not receive the same tax treatment at the state level.

To enter Form 1099-MISC received instead of a W-2 for Paid Family Leave, in TurboTax Online:

Go to Wages & Income
Scroll down the screen until you see Other Common Income and click Show more
Choose the Start on the 1099-MISC line
Enter the info from your form into the corresponding boxes
- If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17
- Click Continue

Answer the interview questions for this one-time payment:

Does one of these uncommon situations apply?, Check None of these apply and Continue
Did the __ involve work that's like your main job?, Check, No, it didn't involve work like my main job and Continue
How often did you get income for __?. I got it in 2023 and Continue,
Did the __ involve an intent to earn money, Check, No, it didn't involve an intent to earn money., Continue

If you enter the 1099-MISC following these steps, you will see the questions about work and the intent to make money.

If you answer "yes" to that question, TurboTax may create a Schedule C assuming the amount represents self-employment income.

If you are in California:

In California, Paid Family Leave (“PFL”) provides benefit payments to people who need to take time off work for certain family issues. PFL paid by the California Employment Development Department (EDD) is reported on Form 1099-G, while PFL paid through a Voluntary Plan for Disability Insurance (“VPDI”) is reported on a W-2, either through the employer or a third-party insurer.

Paid Family Leave (PFL) income is taxable on your federal return, but not taxable on your California State return if either of the following situations apply:

It’s paid by the state's Employment Development Department (EDD) and appears on a 1099-G form
It’s paid by an insurance company under a Voluntary Plan for Disability Insurance (VPDI) and is reported on a W-2 from the insurance company

If your PFL is reported on a W-2, you must identify the amount (if any) that was paid by an insurance company, and not your employer.

On the “Do any of these uncommon situations apply to this W-2?” screen in the federal interview, if you mark the W-2 as containing PFL, then TurboTax will display a PFL adjustment screen in the California interview, showing the total wages from the W-2 marked by the user as containing PFL, and asks the user to review and adjust the amount as needed. The screen also instructs, “Don’t include PFL income reported on a 1099-G. This will automatically be deducted from your California income.”

If none of the amount was paid by an insurance company, and all of it was paid by your employer, enter $0 in the wages box in the PFL adjustment screen in the California interview, because any amount reported by your employer in box 16 of a W-2 is considered compensation for services or taxable fringe benefits in California.

The California Franchise Tax Board regularly audits returns with this issue and adds back to California income any amount incorrectly identified as PFL that was paid by an employer as regular wages or was excluded twice by deducting amounts already excluded on Form 1099-G.

If you got a W-2 from an insurance company for PFL, then you do subtract it from California wages. If, however, your employer just paid regular wages in your W-2, then you don't subtract it from California wages and you should remove it from the amount in the California PFL screen.

Any PFL reported on a Form 1099-G will automatically be deducted from your California income. Don't deduct it separately on the screen where you deduct PFL from an insurance company or you will get a double deduction. Also, don't deduct regular W-2 wages as PFL.

See this California EDD webpage for more information.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

wjkessler — Sun, 31 Mar 2024 17:45:18 GMT

I have this same problem. It worked last year, but not this. TurboTax needs to fix this ASAP.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

DoninGA — Sun, 31 Mar 2024 18:02:41 GMT

@wjkessler

To enter a Form 1099-MISC that is NOT from work

Click on Federal Taxes (Personal using Home & Business

Click on Wages & Income

Click on I'll choose what I work on

Under 1099-MISC and Other Common Income

On Form 1099-MISC, click the start or update button

Enter the Form 1099-MISC and follow the interview. You will land oh the following screens to indicate the income was NOT from work.

Screenshots are from the 2023 TurboTax Premier desktop edition. The same screens are available using the TurboTax online editions -

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

Riley DE — Sun, 02 Feb 2025 03:16:06 GMT

I was issued a 1099-Misc. for PFL by the private insurer who made PFL payments. This is not for any other type of income. Turbotax automatically treats this income as Schedule C other income, but it is not - I did not work for the income, it is just PFL. The answer from James in 2022 below seemed helpful but the Turbotax mask has changed and doesn't seem to allow me to report it in the way he describes, it assumes it is for work and tbumps Sched. C, which doesn't apply for this situation. Should I treat the 1099-Misc as a 1099-G within Turbotax?

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

DianeW777 — Mon, 03 Feb 2025 15:23:32 GMT

Yes, you are correct. This is not self employment income and should be reported by using the steps below. Once completed this will move the income to the Schedule 1, then the 1040. You may need to delete the Schedule C.

TurboTax Online/Mobile > Search 1099misc > click See more > click the highlighted 1099-MISC
TurboTax Desktop > Search > 1099-MISC > Click the Jump to.. link
Enter the 1099-MISC exactly as printed, and then Continue
Enter Paid Family Leave
Select None of these apply, then Continue
Select No, it didn’t involve work….. and Continue to 'How often did you get income for Paid Family Leave?'
Select ONLY the tax year for which this specific 1099-MISC was issued.
Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year.
Select No, it didn’t involve an intent to earn money, then Continue
Select NO, then Continue
Click the DONE button >

This will complete the entry and you can continue to work on your tax return.

You'll need to delete this form Schedule C --------------------.

If you're using TurboTax Online software and need to delete a form, click here.
If you're using TurboTax Desktop software and need to delete a form, click here.

You can review your return using the steps below. For TurboTax Desktop simply switch to Forms (upper right).

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)
Select Tax Tools
On the drop-down select Tools
On the pop-up menu titled “Tools Center”, select View Tax Summary
On the left sidebar, select Preview my 1040

@Riley DE

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

ColleenV — Tue, 25 Feb 2025 18:39:34 GMT

Hello. Regarding a 1099-Misc for 2024 FMLA benefits:

I agree, Oregon should report the benefits on 1099-G, but they are reporting on 1099-MISC, for the second year in a row, it seems. What complicates this is...

Oregon just sent out a clarification on where to report the Paid Leave Oregon (tax) subtraction - saying to follow 2024 instructions for 1040 Schedule 1, line 7 on where to report the subtraction. That line is for unemployment benefits.

If one enters the 1099-Misc as other income, but the decrease in that other income by the fmla taxes paid, it will look weird on the return, in my opinion.

Is the consensus to report this as unemployment compensation or as other income?

Thank you.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

ColleenV — Tue, 25 Feb 2025 18:41:36 GMT

Hello. Regarding a 1099-Misc for 2024 FMLA benefits:

I agree, Oregon should report the benefits on 1099-G, but they are reporting on 1099-MISC, for the second year in a row, it seems. What complicates this is...

If one enters the 1099-Misc as other income, but the decrease in that other income by the fmla taxes paid, it will look weird on the return, in my opinion.

Is the consensus to report this as unemployment compensation or as other income?

Thank you.

Forgive me for posting this twice. It was supposed to be in reply to DawnC not to the op. Trying to get this in the place intended.

Re: I have a 1099-MISC for paid family leave where do i ADD THIS ON MY TAX RETURN?

MonikaK1 — Tue, 25 Feb 2025 20:36:05 GMT

Report the income in the area for the type of form on which it was reported (including a 1099-MISC). You don't report it on a Schedule C. There are multiple answers in this discussion thread showing how to enter a 1099-MISC so that it doesn't appear to be self-employment income. Here is one:

TurboTax Online/Mobile > Search 1099misc > click See more > click the highlighted 1099-MISC
TurboTax Desktop > Search > 1099-MISC > Click the Jump to.. link
Enter the 1099-MISC exactly as printed, and then Continue
Enter Paid Family Leave
Select None of these apply, then Continue
Select No, it didn’t involve work….. and Continue to 'How often did you get income for Paid Family Leave?'
Select ONLY the tax year for which this specific 1099-MISC was issued.
Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year.
Select No, it didn’t involve an intent to earn money, then Continue
Select NO, then Continue
Click the DONE button >

There is also a new IRS Revenue Ruling, RR 25-04, that also addresses the issue of paid family leave from state programs. It is currently open for comments and it is advising states on how to report this income.

See here for more information on the Oregon 2024 legislation that affects Paid Family Leave effective 7-1-24..

@ColleenV