Recieved a 1099-MISC instead of 1099-G for PFL in CO

[wetzlk]

Hi, I received a 1099-MISC instead of 1099-G for Paid Family Leave (PFL) payments in CO. This was done through a 3rd party insurer that my employer partners with, and their agent told me explicitly that for "Paid Family Leave - These benefits are not taxable. The employee receives From 1099 at the end of the year to report these wages".

However, when I enter a 1099-MISC and select the following options based on a previous forum post:

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• Select Federal from the left side menu.
• Click on Wages & Income.
• Scroll down to Other Common Income.  Click Show more.
• Click Start / Revisit to the right of 1099-MISC.
• Enter 'paid family leave' under Describe the reason.
• Select 'None of these apply' at the screen Does one of these uncommon situations apply?
• Select 'No' at the screen Did the income involve work.
• Select 'No' at the screen Did the income involve an intent to earn money?

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It appears to increase my tax liability even though later in the same thread it says the following and the wages were not reported on my W2:

Paid Family Leave (PFL) income is taxable on your federal return, but not taxable on your California State return if either of the following situations apply:

• It’s paid by the state's Employment Development Department (EDD) and appears on a 1099-G form
• It’s paid by an insurance company under a Voluntary Plan for Disability Insurance (VPDI) and is reported on a W-2 from the insurance company

[MaryK4]

The FAMLI is currently taxable for federal income taxes but not for Colorado state.  Your entry is correct, and you will be able to adjust the income in the Colorado section of TurboTax.

See Colorado does not tax FAMLI benefits.

[SpLitBoardEr]

I have this same situation and need further help please. FAMLI Paid Family leave was handled by third party insurance who issued a 1099-MISC. IRS guidance does not make FAMLI benefits subject to state income tax. However, after entering the 1099-MISC per this posts guidance, my Colorado Refund went down. I can not find a way to make this not taxable for Colorado state return. Also, this link does not exist:  "See Colorado does not tax FAMLI benefits."

[AmyC]

Follow these steps:

1. Open to your CO state return
2. Go through until you see income  
3. Locate Miscellaneous income
4. Locate FAMLI Benefits Received, start
5. Enter the nontaxable portion of your benefits 
6. Continue by selecting Done with Income
7. Your benefits are now listed at the top of the page under income that CO handles differently.

The third party benefits paid on a 1099-MISC can make the situation frustrating but that is the correct method for them. The link is from last year and CO has changed it.