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Is correct that received medical Leave payment is not taxable in Washington?

Hi, Is it correct that if on the paycheck we have a deduction of WA Paid Medical Leave, we do not need to pay tax on received medical leave benefits (payments)?

 

I was reading some old post. And it looks like so, so I want to double check if this is still the case?

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7 Replies
MaryK4
Employee Tax Expert

Is correct that received medical Leave payment is not taxable in Washington?

It depends- if you have Medical Leave Payments on your paycheck, you paid some or all of the premiums so the benefit is not taxable income on your federal return- but you will have to determine the taxable amount based on your contribution versus your employer contribution.  Note: this is on contrast with Family Leave benefits (for bonding or caring for a family member)- in general these are taxable and the state issues a 1099-G for the payments.  

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Is correct that received medical Leave payment is not taxable in Washington?

Thank you

 

How should people know how much employer paid for the medical leave premiums when paycheck only shows how much I paid?

 

And they don’t provide 1099, how should I figure out the taxable portion if any and report it ?

ThomasM125
Employee Tax Expert

Is correct that received medical Leave payment is not taxable in Washington?

The portion your employer paid may have been listed in box 14 on your W-2 form for the years you were covered. Otherwise, you would have to ask your employer for help determining the amount they paid. You would divide the amount the company paid by the total paid to determine the percentage for the taxable distribution. Multiply that by your distribution for the year to arrive at the taxable portion.

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Is correct that received medical Leave payment is not taxable in Washington?

But without 1099G, I heard it does need to be reported in WA because of some grace period. If it needs to be reported, where to on TurboTax

ThomasM125
Employee Tax Expert

Is correct that received medical Leave payment is not taxable in Washington?

You would report it as "Other Income" on your return as follows:

 

1. Start in the Federal section of TurboTax

2. Look in Wages and Income and find the Other Common Income section

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other reportable income 

5. Enter a description for the income and the amount


 

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Is correct that received medical Leave payment is not taxable in Washington?

If employer did not pay any of those premium than I do not need to report this, right?

MaryK4
Employee Tax Expert

Is correct that received medical Leave payment is not taxable in Washington?

Correct, if you paid the total premiums (employers with fewer than 50 employees are not required to make contributions), you do not have to report the medical leave benefits as income.  @superlyc 

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