I received a 1099-misc for Paid family and Medical Leave...instead of a 1099-G

[user17740977039]

The Paid Family and Medical Leave was reported on a 1099-MISC.  I see in other posts that a 1099-G is usually used.  I just want to be sure that I am entering this Medical Leave correctly into Turbo Tax.

What would be the reason that a 1099-MISC form was sent instead of a 1099-G?

Should I be reaching out to the 3rd party Insurance Company?

Help!

[CesarJ]

If a private insurance company or third-party administrator handles your Paid Family and Medical Leave (PFML) payments instead of a state agency, you might receive a 1099-MISC (typically with the amount in Box 3) rather than a 1099-G. To report this in TurboTax, navigate to the "Other Common Income" section and enter the 1099-MISC details. Ensure you specify that the payment was not related to self-employment or your regular work to prevent being charged unnecessary self-employment taxes.

To enter your 1099-MISC for Paid Family and Medical Leave in TurboTax Online, follow these steps:

1. Go to the Wages & Income section.
2. Find the 1099-MISC and Other Common Income area and select Start or Update next to Income from Form 1099-MISC.
3. Answer Yes to "Did you get a 1099-MISC?"
4. Enter the details exactly as they appear on your form.

[user17740977039]

Thank you for the information. 

I do have some more questions after reviewing the community board posts...

I thought Paid Family/Medical Leave was not taxable...am I incorrect?

Is it taxable federally, by state (MA), or both?

When entered as directed, my Fed and State amounts change drastically; and not in my favor...

Please advise 🙂

[CesarJ]

Massachusetts Paid Family and Medical Leave (PFML) benefits are considered taxable income for federal purposes, but generally not for Massachusetts state income tax.

@user17740977039 

[user17740977039]

Okay, then let me ask...why once the 1099-misc form (PFML) is entered into TT I am paying more in state taxes?

[MonikaK1]

Paid family leave (PFL) benefits, paid through private insurance and reported on a 1099-MISC, are generally considered taxable income for federal purposes, though state tax treatment in Massachusetts can be complex; they may not be subject to MA state income tax in some cases.

IRS Revenue Ruling 2025-4 provided guidance regarding the income and employment tax treatment of contributions and benefits paid in certain situations under a state paid family and medical leave program, as well as the related reporting requirements. Massachusetts will delay its implementation of certain portions of the tax withholding and reporting requirements outlined in IRS Revenue Ruling 2025-4 due to new guidance issued by the IRS. On December 19, 2025, the Internal Revenue Service (IRS) issued IRS Notice 2026-6 which extends the transition period to implement certain portions of the guidance of IRS Revenue Ruling 2025-4 for an additional year.

Contact your employer of the insurance company that is administering their Paid Family and Medical Leave program for more information as to whether the amount is taxable for the state. If they showed amounts in the state portion of the form, it is likely taxable for Massachusetts.

@user17740977039