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.
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.
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.
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?
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).
I have entered as suggested in this post but am still required to put in Schedule C. Is there a fix to to this?
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).
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!!!
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
@DianePerry
I have done this. When the program does the review I get 9 errors involving a schedule C.
Please remove the schedule C:
How do I view and delete forms in TurboTax Online?
@DianePerry
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.
It won't allow you to remove a schedule C.
What do we do? This is aggravating.
@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:
I keep doing that, but it still keeps pulling a Schedule C.
I removed the form, but it keeps showing up.
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.
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.
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
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?
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.
If you are using the Desktop version (disc or download):
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:
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.
After being on the phone with a chat expert and following your instructions, they were very helpful.
Thank you
How did this cost thousands in taxes? We’re your taxes accepted ?
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