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." 

[noellematthews]

I figured it out, absolute nightmare though.

You don't want to claim it as 1099-g, because it wasn't. You should amend for the 1099-misc, and as long as you follow all the other prompts in all the faqs you'll be good to go BUT THE MOST IMPORTANT PART- only click that it is income for THIS YEAR. Not in 2024 or next year, if you do that the system is not smart and makes it self employment, schedule c, which is a much higher tax rate.

If you submit your taxes with the wrong forms, you're at risk for being flagged for an audit. Hope this helps!

[BergieAR]

Disclaimer: I am not a tax professional, attorney, or financial advisor. The information below is based solely on my personal experience and conversations with representatives. It should not be relied upon as tax or legal advice. Please consult a qualified professional or the IRS directly before making filing decisions.

I’ve spent over two and a half hours this week on the phone with both Intuit and the Oregon Employment Department trying to clarify the federal tax treatment of Paid Leave Oregon benefits. Here’s what I’ve learned so far — and where things remain unclear.

1099 Forms Issued

• If you received Paid Leave Oregon benefits for your own leave, the state issued a 1099-MISC.
• If you received benefits to care for someone else, the state issued a 1099-G.

Federal Taxability Question

I reviewed IRS Revenue Ruling 2025-04 (linked on the Paid Leave Oregon website) regarding the federal taxability of these benefits.

Based on my understanding of that ruling (and additional clarification I sought), the recipient may be responsible for paying federal income tax only on the portion of benefits funded by employer contributions.

For example:

• If an employer has more than 25 employees, the employer contributes 40% of the program funding.
• The remaining 60% is employee-funded.
• Under this interpretation, only the 40% employer-funded portion would be federally taxable income.

However, a Paid Leave Oregon representative told me something different — that the benefits count as income but are considered non-taxable income. That seems contradictory, and I’m hesitant to rely solely on verbal guidance to remain compliant with IRS requirements.

Scope of Issue

This appears to affect:

• Oregon’s Paid Leave program
• Washington’s state-sponsored paid leave program
• Potentially similar programs in other states

Contact with Intuit & State

• The Intuit representative I spoke with said the issue would be escalated internally for possible system updates but could not guarantee any changes.
• The Paid Leave Oregon representative also said they would escalate the issue on their end, again with no assurance of action.

At this point, I’m essentially in a holding pattern.

Possible Reporting Workaround (Not Yet Tested)

Some online sources suggest the following approach in TurboTax:

1. Enter the 1099-MISC as received.
2. Go to:
• Other Income
• Less Common Income
• “Other reportable income”
3. Enter the employer-funded portion as a negative adjustment.
4. Retain documentation supporting all calculations in case of IRS inquiry.

Again, I have not yet tried this method and cannot confirm whether it is correct.

[DianeW777]

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.

1. TurboTax Online/Mobile > Search 1099misc > click See more > click the highlighted 1099-MISC
2. TurboTax Desktop > Search > 1099-MISC > 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.

@BergieAR