How do I submit a 1099-Misc for Paid Leave Oregon. It keeps saying this misc form is for self employment.

[emilyjhoffert-gm]

I was on paid leave for bonding with a child - I received one 1099-G for 10 weeks of my leave and one 1099-Misc for the pregnancy portion of my leave. I do not want to owe as it already took taxes out of this type of leave.

[MarilynG1]

Type '1099-Misc' in the Search area, then 'Jump to 1099-misc'.

If you have already entered your 1099-Misc, you can EDIT it at the Summary page, or DELETE it and re-enter. 

Your income should be reported in Box 3, Other Income.  Be sure to check the box 'my form has info in boxes 1-18' so you can enter Federal Tax withheld. 

Choose 'none of these apply' on the 'Uncommon Situations' page.

On the next pages, choose 'No, it didn't involve work like your main job', you received it in 2023, and 'No, it didn't involve an intent to earn money'.

It will be reported as 'Other Income' on your return, and not Self-Employment. 

[emilyjhoffert-gm]

Should I put "Oregon Paid Leave" in the Describe the reason for this 1099-MISC area?

[emilyjhoffert-gm]

I appreciate your help - It still is stating I owe %15.3 in taxes since I didn't pay enough on this. When I did, and it wasn't self employment. 

Thank you again for any insight!

[RobertB4444]

When you entered it the first time it generated a schedule C for the self employment.  Most people receiving 1099-MISC or 1099-NEC are receiving self-employment income so the system defaults to this.

First, go back to your 1099-MISC that you have entered and delete it.  The little trashcan to the right will delete the information that you have entered.

Second, we need to delete the schedule C that the system has created.  Click on 'Tools' in the bottom left corner of the screen and then click on 'Tax Tools'.  Then click on 'Delete a Form'.  You'll see all of the forms that are included in your return.  Delete the schedule C from that list and any schedule C worksheets.  Don't delete any other forms - tax forms are interconnected and deleting the wrong one can mess up your whole return.

Third, you're going to re-enter that 1099-MISC using the instructions that @MarilynG1 gave you above.  

That should fix all the issues and leave you with 'Other Income' that is already covered by the taxes withheld on your 1099.

@emilyjhoffert-gm 

[ASampels]

I followed the steps in the answer, but Turbo Tax is still forcing me to complete a Schedule C - Profit or Loss from Business. How do I avoid this? Paid Leave Oregon is simply short term disability. Not a business.

[ee-ea]

@ASampels 

This applies to Form 1099-NEC, 1099-K, 1099-Misc et al and to other taxable income without a report.

Enter it in the personal section, Other Common Income Form 1099-MISC.  To ensure it does not go to Schedule C (self-employment), you will answer the follow-up questions accordingly. 

On the Describe the reason for this 1099-MISC screen, enter a description of the other income. (award/stipend)

Select None of these apply on the Does one of these uncommon situations apply? screen.

Select No, it didn’t involve work like my day job on the Did the involve work that's like your main job? screen.

Select I got it ONLY in 2023 on the How often did you get income for? screen.

Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.

Answering differently to any of these questions will imply self-employment and generate Schedule C.  

Please give feedback. If this helps click “Thumb” or “Best Answer” if it’s a solution.

[ASampels]

I think I figured it out! Thank you for your instruction. I believe Oregon should have submitted this as a 1099-G not 1099-MISC. I entered it as a 1099-G and everything worked out just fine. Thanks again!

[alissawilson]

I had the EXACT same problem, and I did the same thing, entered it as a 1099 G because thats what its supposed to be, misc is literally for contractor work and taxed way differently and more, so I entered it as a 1099 G, and mine went through just fine, until I got my return and it was like half of what it was supposed to be. it was supposed to be like 3400, and I got like 1700, which is what turbo tax was saying it would be when I first entered it as a 1099 misc. So, seems like IRS just changed it to 1099 misc themselves, and Im pretty irritated about it because maternity leave and disability income should not be taxed like independent contractor work thats crazy!!!!! and Ive seen a bunch of posts of people all having this same problem with their 1099s from oregon paid leave so I dont know what the deal is but its pretty annoying. 

[KrisD15]

Form 1099-NEC is for contractors and is applied to Schedule C.

Form 1099-MISC is for several different income types and is reported differently depending on what the payment was for. 

Oregon uses Form 1099-G for certain payments and Form 1099-MISC for others. 

The income on Form 1099-MISC is taxable "Other" income and reported on Schedule 1 of your federal tax return. 

According to Oregon.gov
"Question: Will Paid Leave send me a Form 1099 showing how much I received in benefits during the year?
Answer: Yes, you will be mailed a Form 1099 by the end of January each year. You will receive a 1099-MISC if you receive benefit payments of $600 for medical leave. You will receive a 1099-G if you receive benefit payments of $10 or more for family or safe leave. You may receive both a 1099-MISC and a 1099-G if you receive benefits from different leave types. Form 1099 will include how much you received in benefits and any federal or state tax withholding. The Internal Revenue Service and the Oregon Department of Revenue also receive a copy of Form 1099."