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:
------------------------------------------------------------------------------------------------------------------
- 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?
------------------------------------------------------------------------------------------------------------------
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
