New Jersey FLA payments

[weldonds1]

Hello. 

Back in 2021 we received the child tax credit for children that we had at the time in foster care. Also during that time I claimed FLA to help to take care of the child. The state of NJ paid me for time that I took off of work. I was under the impression that it was tax exempt income, especially because NJ never sent me a tax form to type in to Turbo Tax for my tax preparation. Now a few weeks ago I received a notice from the IRS stating that I owe over $1000 to them because I didn't report it and now I owe interest on the amount due too!  Please help me to understand what is going on. Thanks!

[DashonnonH]

Based on the information you provided, you would include the FLA income on your tax return.

Family Leave Insurance benefits are subject to federal income tax and to federal rules on reporting income and paying taxes. Family Leave Insurance benefits are not subject to New Jersey state income tax. You may choose to have 10% of your benefits withheld for federal income tax.

You can review link below for additional information

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.nj.gov/labor/forms_pdfs/tdi/WPR-119%20(1-18).pdf

Thank you for participating today!

[rjs]

New Jersey does not mail out the 1099-G tax form for FLA benefits that you have to enter into your tax return. You have to access your FLA Form 1099-G online.