I have been on the phone and on my computer for hours trying to figure this out, so hoping someone else finds this and it helps them. I was on Paid Leave Oregon for the end of 2025 and beginning of 2026. I received a 1099-MISC from the Oregon Employment Department, and I called to confirm from them that this was the correct form (on Turbo Tax's "expert" request- they thought the state sent me the wrong thing?? sure.).
When I went through all the prompts to enter the 1099-Misc, no matter what I did it would turn it into self-employment, adding a schedule C and taxing me at a MUCH higher rate. I half considered entering it as a 1099-G so it would be taxed correctly, but did not want to knowingly do something incorrect... after hours of searching message boards I FINALLY found the issue.
Here are the steps:
1. Enter in the 1099-misc info
2. Describe the reason for this 1099-MISC: "Paid Leave Oregon" (or whatever leave/program it is for)
3. Do one of these uncommon situations apply?: Click "None of these apply"
4. Did the Paid Leave Oregon involve work that's like your main job?: Click "No, it didn't involve work like your main job"
5. How often did you get income for Paid Leave Oregon? THIS IS THE IMPORTANT STEP THAT KEPT MESSING ME UP, AND THE ONLY WAY TO GET IT TO TAX PROPERLY. You absolutely MUST only click the box "You got it in 2025." you can't click for 2024 or 2026 (or past/future years, whenever you're reading this). On this page the only year that matters is the year that is listed on the 1099-MISC. If you click anything additional, the system borks up and counts it as Self Employment and brings in a schedule c, which will tax you more.
This was an ABSOLUTE NIGHTMARE EXPERIENCE and it is crazy that of the 5 "experts" I spoke with, none of them knew this was a problem. Anyway, hope this helps someone out there!!