turbotax insists on a 1099-G for paid family leave

[North Shore Andy]

I got a form 1099-MISC, but turbotax does not give me that option.  When I select "paid family leave" it only lets me enter a 1099-G

[DoninGA]

Paid Family Leave compensation is provided by your state and they would have issued you a Form 1099-G for the compensation.

Who issued you the Form 1099-MISC?  Was it from an employer?

[North Shore Andy]

Hi.  Thanks for answering. It was an employer-sponsored insurance company that coordinated State and Employer benefits and issued the paycheck substitutes itself.

[DoninGA]

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@North Shore Andy wrote:

Hi.  Thanks for answering. It was an employer-sponsored insurance company that coordinated State and Employer benefits and issued the paycheck substitutes itself.

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Employer-paid family leave gets reported on your W-2.  You need to get a corrected W-2 from your employer to have the paid family leave reported correctly.

[North Shore Andy]

Thanks.  I think the problem is if the employer updated the W2, the IRS still has the original 1099-MISC so I might get taxed twice on the same income.  Elsewhere in this site I read a convoluted way to squeeze the information into a Schedule C, "Business Income".

I would fault turbotax for insisting paid family leave is on a 1099-G and not letting me say it was reported on a 1099-MISC.

[DoninGA]

@North Shore Andy You can enter the Form 1099-MISC as non-business income however you will not be able to use the TurboTax Free edition.  It requires that the Deluxe edition ($59) be used since the income from the 1099 will be entered on Schedule 1 Line 8z with the total of Schedule1 Part I Line 10 flowing to Form 1040 Line 8.

Using the online editions -

Click on Federal on the left side of the online program screen

Click on Wages & Income at the to of the screen

Scroll down to Other Common Income

On Form 1099-MISC click on Start or Revisit

Complete the Form 1099-MISC assuming that your form has the Family Leave Income reported in box 3.  If federal or state income taxes were paid click on the box My form has other info in boxes 1-17

Enter a description for why the income was received - Employer provided Family Leave Income

On the screen Does one of these uncommon situations apply? - Select None of these apply

On the following screen select No, it did not involve work like (name)'s main job

On the following screen select 2021

On the following screen Did the Employer Provided Family Leave Income involve an intent to earn money? - Select NO

Complete this section and select Done.