"Type of Payment" for 1099-G for Colorado FAMLI leave program

[Daboa]

I received a 1099-G from the state of Colorado for the FAMLI program, which provides paid leave for medical and family reasons. The TurboTax wizard is forcing me to "Select the type of payment that was reported on this 1099-G." But none of the options listed are applicable. The boxes for these options (taxable grant, agricultural payments, market gains, etc.) are all $0 or blank on the form. The only box with a number is Box 1 for "Unemployment compensation." So how should I answer this question in the wizard? 

[KrisD15 · Accepted solution]

They are considered Unemployment on a federal return. 

Please delete that 1099-G (it is in the wrong section) and go instead to 

• Wages & Income
• Unemployment
• Unemployment and Paid Family Leave    START 

[Daboa]

Thanks! Didn't realize you could enter 1099-Gs in different sections. That did the trick.

[Dan]

I received Colorado FAMLI benefits as a non-resident.  When completing my Colorado tax return I was pleased to find out that Colorado does not tax these benefits, however Turbo tax then moved that income to my Iowa tax return.   Is it correct that Iowa can tax income from a Colorado source?  If not, what needs to be done in my Iowa tax return to fix this?

[IsabellaG]

Yes, if Iowa is your resident state, you will be taxed on your FAMLI leave benefit even though it is sourced in Colorado. The resident state taxes income from all sources.