Does New York Tax Paid Family Leave?

[gina230]

Does New York City or New York State tax family leave benefits that are received?  The benefits received were reported on a 1099-MISC and were properly reported as Federal taxable income.  If New York does NOT tax the benefits received, how do I record the "subtraction" in TurboTax?

[MayaD]

 NY Paid Family Leave Benefits paid to employees are taxable.

For more information check tax.ny.gov

[gina230]

That link only addresses whether the benefits paid are taxable for Federal purposes, not whether they also are taxable for New York purposes.

[LeonardS]

"If your employer participates in New York State’s Paid Family Leave program, you need to know the following:

• Any benefits you receive under this program are taxable and included in your federal gross income.
• Your employer will not automatically withhold taxes from these benefits; you may request voluntary tax withholding.
• You will receive either Form 1099-G or Form 1099-MISC from your employer showing your taxable benefits.
• Your employer will deduct premiums for the Paid Family Leave program from your after-tax wages.
• Your premium contributions will be reported to you by your employer on Form W-2 in Box 14 as state disability insurance taxes withheld."  Ref  NYS Department of Taxation New York State Paid Family Leave

[gina230]

I had read that before.  I was trying to clarify whether New York taxes paid family leave benefits.  The Feds clearly do.

[MaryK4]

No, Paid Faimly Leave is not taxable by New York state.

@gina230

[gina230]

Is there a reference anywhere to this?  Since the paid family leave was reported on a 1099-MISC with the amount in box 3, how do I get TurboTax to exclude this amount from New York taxable income?

[KrisD15]

Yes, New York will tax your Paid Family Leave Income,

however employment tax (FICA) is not charged. 

"Yes, NY PFL benefits are considered taxable non-wage income subject to federal income tax." 

Reference link

[gina230]

Yes, NY PFL benefits are considered taxable non-wage income subject to federal income tax." 

But this doesn't address New York's income tax.

[DaveF1006 · Accepted solution]

NYS follows federal guidelines in taxation unless it is specifically excluded. I researched the NY state gov website and i could not find any reference that states the contrary. 

[gina230]

Thanks.  That explanation makes sense to me.