Colorado FAMLI benefit and new IRs RR 25-04 guidance on federal taxes for 1099 G

Forum|Forum|1 year ago
April 1, 2025
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Any body have any insight on how they are doing their federal taxes for colorado's new FAMLI benefits (paid family leave) and 1099g form. I know that starting jan 2025, 10% federal deduction applies to the benefits, its unclear what applies to those whom received benefits in 2024. When i put it into turbo tax its taking my full tax bracket deduction of 22%. The famli website states that I may not have to submit for federal taxes since its unclear how federal taxes will apply. The new IRS guidance RR25-04 also states I may not need to submit for federal taxe, page 20 at the bottom. https://www.irs.gov/pub/irs-drop/rr-25-04.pdf

No body seems to know about the rr 25-04 guidance. Turbo tax specialist say submit like any 1099g form but they are all out of state and dont know about rr 25-04.

Ask the Experts - Fidelity - April 2025

MAK70

Because employees pay half of the premiums, one-half of the income is taxable income. Because the 1099-G is the total you received, you can an adjustment under Miscellaneous Income.

When you get to the Colorado state section, you will have to make sure you make the right adjustment to exclude the one half amount as on the federal return (do not add another adjustment.)

Under Less Common Income select Miscellaneous Income, 1099-A, 1099-C
On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income
On the Any Other Taxable Income? screen, select Yes
On the Other Taxable Income screen enter the description "Adjustment for Colorado FAMLI," then one half as a negative. Select Continue
On the Other Miscellaneous Income Summary screen, select Done