How do you file a 1099-Misc for Paid Family Leave for Oregon if it's making me report as self-employed and I was not self-employed?

[MayaD]

To enter your 1099-MISC form:

1. Open or continue your return.
2. Select Search, enter 1099-misc and select Jump to 1099-misc.
   • Or go to Wages & Income and select Start next to Form 1099-MISC under Other Common Income.
3. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, on the 1099-MISC Summary screen select Add Another 1099-MISC.
4. Enter the info from your form into the corresponding boxes
5. On the screen titled "Describe the reason for this 1099-MISC", enter Paid Family Leave and Continue.
6. On the next screen titled "Does one of these uncommon situations apply?", select None of these apply and Continue.
7. On the next screen asking whether the income involves work that's like your main job, select No, it didn't involve work like your main job.  Select Continue.

TurboTax will carry over the information to your state return when you prepare it.

. 

Benefits received from the Paid Leave Oregon program generally are taxable income:

• Family leave benefits are fully taxable. 
• Safe leave benefits are fully taxable. 
• Medical leave benefits are taxable based on the ratio of employer contributions to total employer and employee contributions.
•  Assistance grants received from the Paid Leave Oregon program are generally taxable.

OR Department of Revenue

[val0816]

Thank you for the help. I actually couldn't get passed the review process by using the 1099-misc. form. I ended up entering the data into the 1099-G form for paid family leave. It was the only way to get around the review process. I believe they truly meant to send this form type instead. Oregon paid leave is new beginning in 2023 so they are still working everything out. 

Thank you to this community. 

[acron]

Since medical leave benefits are only taxable for the percentage that the employer paid, should you reduce the amount reported on the 1099-Misc accordingly? Or is there another way to have that percentage applied to the total medical benefit income received?

[JohnW152]

Your Form 1099-MISC should only display taxable amounts.  These amounts are reported to the IRS, and the IRS is expecting those amounts to be reported on your return.

I'd suggest that you contact the issuer just to make sure that the amount it reported is the fully taxable amount.

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[dntkunz]

I received Paid Leave Oregon benefits in 2024.  The leave was for my own medical situation.  I received Form 1099-MISC reporting this income.  I have entered this into Turbotax.  However, there is no box available in the 1099-MISC template to include the benefits I repaid.  I see there is a way to do this using the Form 1099-G template but not on Form 1099-MISC.  Like the other person before me said, it is also asking me business questions as if I am self-employed.  Here are my two questions:  (1) How do I enter the benefits repaid appearing next to box 16 on the 1099-MISC?  The box with the repaid benefits is not numbered but labeled as "OR-01 Benefits Repaid" and (2) should I be concerned that it is trying to tax the Paid Leave Oregon "Other Income" as miscellaneous income as if I owned a business? Thank you for your time.

[DawnC]

Yes; you should be concerned about the self-employment, so delete that 1099-misc.   And delete the Schedule C that TurboTax has started.   You should request a corrected form; the one you have doesn't sound correct.   Some options are below; just keep detailed records in case of any inquiry.

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

Options:

• Use the 1099-G Paid Family Leave option.  OR
• Enter the 1099-misc entering the net amount.  OR
• Enter the 1099-misc with full amount, and then enter a negative entry in Other Reportable Income for the repaid portion.  Search for other reportable income to be taken there.   It is the last option in miscellaneous income.  

@dntkunz 

[jhm300]

I think this a failure in the Turbo Tax program. It automatically defaults the 1099-Misc income into business income. Using workarounds on taxes is sketchy to say the least.

[DianeW777]

No, it's not sketchy, however it is important to indicate the following when entering it. The IRS is still working on the move from 1099-MISC to 1099-NEC.  Make sure to follow the steps below when entering your Paid Family Leave.

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.

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

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

@jhm300 

[Kaymac]

The problem is that I already paid the taxes to the Feds and to the State and because Turbo Tax recognized it as business income it wants to then tax me for that.  Hmmmmm.

[MonikaK1]

When you enter a Form 1099-MISC, read and answer the interview questions carefully so that TurboTax doesn't misclassify it. Revisit that section and answer the questions again.

You can enter the Form 1099-MISC and identify that it was not income from working so that it doesn't get misclassified as self-employment income:

1. Select Income from Form 1099-MISC under Wages and Income.
2. Enter the payer information and dollar amount
3. Enter a description for the payment
4. When asked about Uncommon Reasons, select that none apply or select one that adequately explains the reason
5. When asked about the frequency of payment, select received in 2023
6. When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax)

Form 1099-MISC is used by various payers to report certain types of miscellaneous compensation, such as rents, prizes, awards, healthcare payments, and payments to an attorney to the IRS and to the recipients of those payments.

@Kaymac