It sounds like the NY family leave was reported on a 1099-MISC. The 1099-MISC, will be reported in other income, and the interview will ask you a series of questions. You should answer that it did not involve the intent to earn money, otherwise it seems that this income is business related.
Here is how to report the 1099-MISC:
- Navigate to Federal > Wages & Income > Other Common Income> Form 1099-MISC> Start or Revisit
- Enter the 1099-MISC as printed, Continue
- Describe the reason for this 1099-MISC: "Paid Family Leave" or similar.
- Select None of these uncommon situations apply, then continue
- Select No, it didn’t involve work that's like your main job and continue
- The next screen asks how often you get income from this. Select only the year of this specific 1099-MISC, 2025.
- Next, select No, it didn't involve the intent to earn money
- You can check this in TurboTax Online by navigating to Tax Tools on the left of your screen, choose Tools, then View Tax Summary. On the left of the screen, select Preview my 1040, then verify the amount is included on Schedule 1, Line 8z "Other Income."
