How to report Paid Family Leave income

Valeria2023
Valeria2023 Member Posts: 5 Newcomer
edited October 2024 in Situation & Life Changes

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!!!

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Best Answer

  • rachels
    rachels FreeTaxUSA Agent Posts: 123 image
    Answer ✓

    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.

Answers

  • Valeria2023
    Valeria2023 Member Posts: 5 Newcomer

    Thank you!

  • on1shi
    on1shi Member Posts: 1 Newcomer

    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.

  • rachels
    rachels FreeTaxUSA Agent Posts: 123 image
    https://community.freetaxusa.com/discussion/comment/4563#Comment_4563

    Hi on1shi,

    I would be happy to submit this suggestion to our development team to be considered for the future.

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