How to report paid Medical Leave Benefits and Contributions

[jennam53]

According to the IRS Guidance on Medical and Family leave rr-25-04, The amount of benefits is only taxable to the extent that it exceeds employee contributions. 

Table 2. Summary of the Federal Income Tax Consequences of Family and Medical Leave Benefits Paid by State Paid Family and Medical Leave Programs states "Medical leave benefits:  The amount attributable to the employee contribution, as well as to any employer pick-up of the employee contribution, are excluded from employee’s Federal gross income."

I have received a 1099-MISC for the entire amount and cannot figure out to to subtract the contributions on my return. I am unable to enter it as a subtraction on schedule 1. Is there something I am missing? 

[MaryK4]

You can either subtract the amount for the 1099-MISC entry, or add it as a negative Miscellaneous income (preferred).  Hopefully the IRS will require the issuers to report the taxable amount next year.  

Under Less Common Income select Miscellaneous Income, 1099-A, 1099-C

1. On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income
2. On the Any Other Taxable Income? screen, select Yes
3. On the Other Taxable Income screen enter the description "1099-MISC PFL Adjustment RR25-04" then the amount as a negative.  Select Continue
4. On the Other Miscellaneous Income Summary screen, select Done