Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 1, 2019 12:38:11 AM

I received a 1099-Misc for Paid Family Leave, How will I file this through Turbo Tax ?

During my maternity leave at work I was paid through a third party insurance company. They sent me a 1099 Misc, how am I supposed to properly file this if I do not own a business & it's work related. 

0 27 26557
1 Best answer
New Member
Jun 1, 2019 12:38:13 AM

You need to report this as 1099 income that's not self-employment.

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter paid family leave

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.

24 Replies
New Member
Jun 1, 2019 12:38:13 AM

You need to report this as 1099 income that's not self-employment.

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter paid family leave

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.

Returning Member
Jul 5, 2020 12:12:52 PM

I'm not sure these instructions are correct. 

 

An alternate place to enter PFL: 

 

Under Personal Income there's a section for Unemployment and Paid Family Leave. It says you can can receive PFL reporting on 1099-G  *or* several other reporting documents.  Wouldn't a 1099-MISC count as one of several other types of documents? 

Expert Alumni
Jul 5, 2020 12:24:38 PM

To enter your paid family leave reported in box 3 of a Form 1099-MISC, use the path Federal>>Income and Expenses>>Other Common Income>>Form 1099-MISC.

 

For purposes of this PFL 1099-MISC, you select "didn't involve work like my main job" (because you were on leave, not working) and "didn't involve an intent to earn money" (same reasoning, you were on leave not working).

Returning Member
Feb 21, 2021 10:55:19 AM

I have entered as suggested in this post but am still required to put in Schedule C.  Is there a fix to to this?

Expert Alumni
Feb 21, 2021 11:19:11 AM

Following these instructions from  @DavidS127 should not require a Schedule C:

 

 

To enter your paid family leave reported in box 3 of a Form 1099-MISC, use the path Federal>>Income and Expenses>>Other Common Income>>Form 1099-MISC.

 

For purposes of this PFL 1099-MISC, you select "didn't involve work like my main job" (because you were on leave, not working) and "didn't involve an intent to earn money" (same reasoning, you were on leave not working).

Returning Member
Mar 2, 2021 10:20:21 AM

I have entered my 1099-MISC for paid family leave the way directed above.  When Turbo tax does the Federal review, it tells me I have 9 errors and is telling me I need to complete Schedule C "Profit or Loss from Business".

 

Please Advise!  Thank you!!!

Level 9
Mar 2, 2021 11:04:47 AM

To enter your paid family leave reported in box 3 of a Form 1099-MISC, use the path Federal>>Income and Expenses>>Other Common Income>>Form 1099-MISC.  Here is how to enter the information:

 

Reporting 1099-MISC (box 3 or box 7) that is not self-employment income

  • Wages & Income tab (or Personal Income tab) 
  • Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
  • Enter the 1099-MISC exactly as printed, and then Continue.
  • Enter the reason you got this money – paid family leave
  • Select None of these apply, then Continue.
  • Select No, it didn’t involve work….. and Continue.
  • Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
  • Select No, it didn’t involve an intent to earn money, then Continue.
  • Select NO, then Continue. 
  • Click the DONE button.

@DianePerry

Returning Member
Mar 2, 2021 11:09:27 AM

I have done this.  When the program does the review I get 9 errors involving  a schedule C. 

Level 9
Mar 2, 2021 2:06:14 PM

Please remove the schedule C:

How do I view and delete forms in TurboTax Online?

  • Open or continue your return in TurboTax.
  • In the left menu, select Tax Tools and then Tools.
  • In the pop-up window Tool Center, choose Delete a form.
  • Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

 

 ​​​​​​​

@DianePerry

Returning Member
Mar 2, 2021 4:14:41 PM

Thank you!!!

New Member
Mar 18, 2021 10:30:39 PM

Unfortunately turbotax forces you to move to a costlier option to enter as this as Misc. income, instead of as FMLA, including now having to pay additionally for State filing... all for what? Irritating. 

New Member
Mar 19, 2021 9:37:08 AM

It won't allow you to remove a schedule C. 

 

What do we do? This is aggravating.

Expert Alumni
Mar 19, 2021 1:25:51 PM

@michaelroche  See if you qualify for the Free File Program.

 

 

Expert Alumni
Mar 19, 2021 1:29:32 PM

@pembe-ercen Delete the 1099-Misc and the Schedule C, as the 1099-Misc may keep generating Schedule C unless it is removed also.

 

Click this link for info on How to Delete a Form in TurboTax Online.

 

Re-enter your 1099-Misc as per Expert @ReneeM7122 above: 

 

  • Wages & Income tab (or Personal Income tab) 
  • Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
  • Enter the 1099-MISC exactly as printed, and then Continue.
  • Enter the reason you got this money – paid family leave
  • Select None of these apply, then Continue.
  • Select No, it didn’t involve work….. and Continue.
  • Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
  • Select No, it didn’t involve an intent to earn money, then Continue.
  • Select NO, then Continue. 
  • Click the DONE button.

 

 

New Member
Mar 19, 2021 1:39:16 PM

I keep doing that, but it still keeps pulling a Schedule C. 

I removed the form, but it keeps showing up.

New Member
Mar 19, 2021 2:06:49 PM

What if part of my paid family leave was in 2021? If i select I intend to receive in 2021 it automatically puts a schedule c. 

Expert Alumni
Mar 19, 2021 2:09:51 PM

It sounds like you may still have another empty 1099-MISC included.   This will happen if you entered a 1099 as self-employment and then entered another one as non-self-employment income.   Delete the empty 1099-MISC and then delete Schedule C as well.   

 

  • With your return open, search for Schedule C
  • Select the Jump to link in the search results.
  • On the Your 2020 self-employed work summary screen, select the trash can icon next to the defunct business.
  • Answer Yes, delete this info to confirm the removal of all business-related forms.   You will confirm the removal of Sched C, the summary, the worksheet, the comparison, and the 1099s associated with Schedule C.   See the image below - if you don't see a confirmation to remove the business, it will remain part of your return.  

How do I delete a K-1?

How do I view and delete forms in TurboTax Online?  - use these instructions to remove any empty 1099s that did not get removed with the Schedule C.   @pembe-ercen

 

Returning Member
Mar 10, 2022 12:01:24 PM

Has this been resolved?

It seems Turbotax has now cost me thousands of dollars in taxes from 3 different tax returns due to it adding a Schedule C for PFL.

 

Any idea how to fix it?

Expert Alumni
Mar 10, 2022 12:38:27 PM

Yes, this is resolved. You just need to enter the information following the instructions.

 

If you have already entered your 1099-MISC incorrectly, you will need to delete your 1099-MISC and Schedule C.

 

If your PFL is on a 1099-MISC and you have received an error message about Schedule C and you do not have a business (including gig work), you need to delete the problem forms first.

 

If you are using TurboTax Online:

From inside the return, scroll down to Tax Tools on the bottom of the left side menu.

  1. Select Tools.
  2. Click on Delete a form (third on the list at the bottom of the screen).
  3. Find Form 1099-MISC on the list of forms.
  4. Click Delete to the right.
  5. Confirm your Delete.
  6. Find Schedule C on the list of forms.
  7. Click Delete to the right.
  8. Confirm your Delete.
  9. Click Continue in the lower right. 
  10. Click Continue with my return.

If you are using the Desktop version (disc or download):

  1. Click Forms toward the upper right corner. 
  2. Find Form 1099-MISC on the list on the left.
  3. Highlight it, then click Delete in the lower left corner of the reading pane.
  4. Find Schedule C on the list on the left.
  5. Highlight it, then click Delete in the lower left corner of the reading pane.
  6. Click on Step by Step in the upper right corner to return to the interview.
  7.  

After deleting the forms, run the Federal review or Smart Check to make sure all the error messages are resolved.

 

To enter the 1099-MISC for PFL:

  1. Select Federal on the left side menu.
  2. Select Income and Expenses toward upper left.
  3. Expand/ scroll down the list and find the section called, Less Common Income.
  4. Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
  5. Select Other income not already reported on a Form W-2 or Form 1099
  6. Answer the first question Yes.
  7. Click Continue until you get to the page titled, Any Other Earned Income?
  8. Answer Yes and click Continue.
  9. Select Other and click Continue.
  10. Enter a description and amount on this page, click Continue.
  11.  

Returning Member
Mar 10, 2022 6:08:36 PM

If you paid attention to other people's responses, even when adding the 1099-Misc to the correct place, it was adding a Schedule C. The same exact thing happened to me. I added it to the correct place and it was still making issues for me.

Returning Member
Mar 11, 2022 10:07:20 AM

After being on the phone with a chat expert and following your instructions, they were very helpful.

Thank you

New Member
Mar 18, 2022 7:09:24 PM

How did this cost thousands in taxes? We’re your taxes accepted ?

Expert Alumni
Mar 18, 2022 7:39:56 PM

The PFL income reported on the 1099-Misc is added to your other income (it is replacing wages, remember).  It's not taxable in California, though.

 

If you didn't have tax withheld on this income, you may owe tax.

 

Click this link for more info on Paid Family Leave

 

 

@Adurant92

 

New Member
Mar 19, 2022 10:44:41 AM

thank you that worked, now it didn't add a schedule C.