Oregon PFL 1099-MISC

[ztwhite]

I am trying to file our 2024 taxes with Turbotax and running into an issue.  My wife received Paid Family Leave in 2024 and the state issued a 1099-MISC form, where PFL earnings and tax withholdings were listed.  When I followed Turbotax's instructions and inputted a 1099-MISC, Turbotax is treating this like business income and creating a Schedule C  (which is wrong).  I am then getting errors as I cannot enter the required business information as Oregon PFL is not a business, but paid leave.

I did a google search and it appears others have had a similar issue, and as best I can see, the Oregon Employment Department screwed up and should have issued a 1099-G, not a 1099-MISC.

When I entered the information as a 1099-G (even though we were not issued one), it worked with no errors.

Does anyone know, is this the correct course of action?  Will this cause issues in filing our taxes if we complete/file our return telling Turbotax we received a 1099-G when we really received a 1099-Misc?  There doesn't seem to be a way to complete our return with Turbotax if I input that we got a 1099-Misc.

[JohnW152]

You can enter your Form 1099-MISC paid family leave information in TurboTax Online, but you have to be careful with your inputs so that it won't appear to be self-employment income: 

1. Open TurboTax Online
2. Select  Tax Home in the left pane
3. Select the dropdown to the right of Wages & Income
4. Select  Pick up where you left off, Review/Edit or the edit pencil
5. On the Great! We've got your income info page, select the dropdown to the right of Other Common Income -- Tax refunds, 1099-G, 1099-NEC, 1099-MISC, 1099-K
6. Select Start to the right of Form 1099-MISC
7. Select Yes on the Did you get a 1099-MISC? page
8. Enter the information from your 1099-MISC on the Let's enter the income from your 1099-MISC page, then select Continue
9. On the Describe the reason for this 1099-MISC screen, enter Paid Family Leave, then select  Continue
10. On the Do one of these uncommon situations apply? screen, select the bullet next to None of these apply, then select Continue
11. On the Did the Paid Family Leave involve work that's like [your] main job? page, select the bullet next to No, it didn't involve work like [your] main job, then select Continue
12. On the How often did [you] get income for Paid Family Leave? page, answer appropriately, then select Continue
13. On the Did the Paid Family Leave involve an intent to earn money? page, select the bullet next to No, it didn't involve an intent to earn money.  This indicates to the program that this wasn't self-employment income, so self-employment tax won't be triggered.  Select Continue
14. On the Your 1099-MISC summary page, select Done, unless you have more Forms 1099-MISC to enter

If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.

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