I received a 1099-Misc for NY Paid Family leave (paid time off for maternity leave). I know where to enter it but I'm not sure how to answer the questions it asks about what type of income it is and how I answer the questions impact the amount due/refund calculated. I was being paid while not working so it's not technically payment for working or with an intention to make money but I'm not sure how I should answer those guided turbot tax questions.
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You can enter the 1099-MISC in TurboTax as "Other Common Income," which will not generate Schedule C or SE tax. Please use the following steps:
7. Continue through the rest of the interview screens. The income will appear as Other Income.
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?
NY taxes Paid Family leave. Once you entered the income in the federal interview it is automatically handled in the state return.
So, does 1099-MISC received for NY Paid Family Leave taxable or not? My understanding is employee contributed to the funds using post-tax income. If the benefits received (1099-MISC) is still taxable, will that be double taxed? Thanks.
"does 1099-MISC received for NY Paid Family Leave taxable or not"
Yes, on both the federal and the state return. See NYS Notice below.
"My understanding is employee contributed to the funds using post-tax income."
Yes, see the NYS Notice below.
"If the benefits received (1099-MISC) is still taxable, will that be double taxed?"
Since I presume the premiums are a very small part of the benefits, that's not much of a double taxation, but yes it is, like with some insurances.
Please click here to see NYS Notice N-17-12.
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