Massachusetts Essential Employee Premium Payment

[seetalmk]

I received a $500 payment from the MA state government as part of the Esssential Employee Premium Pay Program, but I did not recieve a 1099-G and the MA website says that one will not be issued since the payment is under $600. Do I need to report this payment to the IRS? If so, how?

[ShirlynW]

Yes, The payment should be reported. The payments are not subject to state income tax, but they may be to federal income tax, according to the program’s webpage.

To enter the payment follow these steps:

1. Open TurboTax
2. Federal > Wages & Income
3. Unemployment > Unemployment and paid family leave> Start
4. On the "Unemployment (and Paid Family Leave)" screen, answer Yes and select Continue.
5. Then on the screen after that "Where did you get your benefits?" answer Government (Form 1099-G).
6. Continue > Type it in myself
7. Continue with the interview.

[sonzoil]

I received the same Essential Worker Premium Pay for $500.  Why would I put that under an "unemployment" tab, makes no sense?  I put it under "other reportable income" tab, and typed in what it was and the amount?

[ErnieS0]

Yes. you can enter the payment as Other Income as you did. As long as you reported the income and description, you will be fine because no 1099-G was issued.

@sonzoil 

[sonzoil]

So now I find when completing my Massachusetts state tax return, that the $500 covid essential employee premium pay, is carried over from my federal return to the Mass return and showing as taxable under "Fees and other 5% income". How do I remove that, since it is not supposed to be taxed or reported to Massachusetts?

[AbrahamT]

Simply delete it from the Schedule X itself. Go into forms mode and enter a seperate line item showing the deduction like this,

I hope this works for you. Good Luck!

[seetalmk]

Is there a way to do this if I am using TurboTax Online? Would I be able to just delete schedule X instead of editing it?

[Cynthiad66]

You can delete a form.  But you should consider just going back to the Federal form and remove it from where it was entered then save and then go back to the state and the correction should follow to the state return.

How to delete a form:

Sign in to TurboTax and open your return by selecting Continue or Pick up where you left off. 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, and worksheet in the list and follow the instructions.

@seetalmk