I received a 1099-Misc for paid family leave. Does this involve work that's my main job? Does this involve intent to earn money?

[carpino72]

I did all that Kris. Replied no to all the questions and only selected the year 2023 that it was received in, and it still goes to business income.  Being as it's not paid by the State of New York and by an Insurance company on a 1099-misc instead of a 1099-g seems to be the problem.  I bought the deluxe version at a good price, and it looks like it isn't going to work for me.  Will look for a different provider.

[KrisD15]

To clarify, which box is the income reported on the 1099-MISC and which box are you entering it into the program?

Please switch to FORMS MODE and delete the 1099-MISC first and Schedule C if listed

Are you doing this under

1099-MISC and Other Common Income

Income from Form 1099-MISC

Box 3 OTHER INCOME

Reason FAMILY LEAVE

NONE OF THESE APPLY

No, it didn't involve work like my main job

Select "I got it in 2023" ONLY

No, it didn't involve an intent to earn money

Do you have another 1099-MISC?    No

[taxes1123]

what about on the NY state return, the 1099-Misc income is attributable to NY or I attribute it to no states? Isn't there no NY state tax for NY paid family leave?

[DawnC]

It is attributable to your NY return.   TurboTax will handle the income correctly, but it is NY sourced income.   Enter it on the federal side, and make an adjustment on your NY state return, if necessary.  

Employees who receive a PFL benefit payment should keep in mind the following: 

• PFL benefits paid to employees will be taxable non-wage income that must be included in federal gross income; 

• Federal taxes will automatically be withheld from benefits, but not state taxes; 

• Premiums for PFL will be deducted from employees’ post-tax wages; 

• At the end of the year, the insurance carrier will send tax forms to the employees that received PFL payments.    @taxes1123