1099-MISC for CA PFL

[rkong79]

I received a 1099-MISC from a third party insurer related to paid family leave I took in 2019.  In CA, PFL is not taxed at the state level. However, when I input the 1099-MISC, I am paying state income tax on that amount. The third party insurer have clarified that they don’t provide 1099-G since they are not a government agency. How do I go about submitting this amount from the 1099-MISC without being taxed state income?

[KurtL1 · Accepted solution]

Even though the Paid Family leave was reported on a 1099-MIsc form you can still use the California Schedule CA (540) to enter the adjustment.  

Per the  2108 Instructions for Schedule CA (540) you would enter on line 19, column B the amount of PFL payments shown in column A. 

No forms or instructions are showing available for 2019 

[metzman7115]

Same question but for NY PFL. Obviously the California Schedule won't apply to me. When I enter in the 1099-MISC section under wages and income it then treats it as if I own a business. During the smart check I get errors because it wants to know information for the profit or loss from the business that doesn't exist.

[KrisD15]

Correct, you will not report it as self-employment.

Click Federal. Click Wages & Income tab

Scroll down to "Other Common Income" and Click Start or in your case Edit if you already entered the 1099-MISC

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.

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. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

[MHWiz]

Does TurboTax have a separate topic for entering PFL in CA return or I just need to enter it as ordinary adjustment?

[rkong79]

I followed the advice of KurtL1 and it worked.  It's part of the CA state adjustments portion.  Entered the description (e.g. CA PFL) and the amount received.  TurboTax made the correct adjustment to the state tax.

[Ahuff75]

Did anyone in NYS get a resolution that actually worked?

[Ahuff75]

@metzman7115  did the advice above work for you?

[MUSTANGSally89]

Hi! this didn't work for me - also the last "no" prompt didn't exist. are these still the right steps? it's still taking the PFL amount as taxable for state

[DianeW777]

The subtraction adjustment is made on the California (CA) return using Schedule CA-540. If you have completed your CA return and did not enter an adjustment you can make this adjustment by selecting 'Other Adjustments to Income' under Miscellaneous (because it was not part of your W-2 wages). 

• Enter your description - Paid Family Leave > Enter your amount in the 'Subtraction' column

For the federal return you should enter as follows.

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.

@MUSTANGSally89