I have received paid family leave benefits. I have been told they are not taxable. Should I still report that income when I file?
Thanks!!!
Hi Valeria2023,
Paid Family Leave is typically taxable income and should be reported on your tax return. You may receive a 1099-G reporting that income. If you get a 1099-G, you can enter that in your FreeTaxUSA account by going to Income > Common Income > Unemployment Compensation (1099-G).
Depending on your situation, it is possible that your PFL will be reported on your W-2 instead of a 1099-G. If that happens for you, you will just enter your W-2 like normal, and the Paid Family Leave will be taxed along with your normal wages.
Thank you!
enter that in your FreeTaxUSA account by going to Income > Common Income > Unemployment Compensation (1099-G).
Slightly confusing, my 1099-G has two Box 1 fields. One is "Unemployment Compensation (UC)" and the other is "Unemployment Compensation - Paid Family Leave (UC-PFL)". It took me a second to figure out that the UC-PFL payment on my form should be entered as UC on freetaxusa.
It would be helpful if the freetaxusa webpage had a question mark button next to the "Box 1 - Unemployment Compensation:" label that I could click for more info. That could clarify that either UC or UC-PFL amounts could go in that box.
Hi on1shi,
I would be happy to submit this suggestion to our development team to be considered for the future.
Yes, please update this to make more sense, as there are two tables on Form 1099-G.
