WA PFML benefit Taxable or not

Forum|Forum|1 year ago
March 19, 2025
1 reply
0 views

Took FMLA in 2024 due to my own medical condition, got paid by WA ESD (Employment Security Department) under Paid Family and Medical Leave/PFML benefit.

WA ESD has sent an email to me that they are not issuing 1099-G for my medical leave, they will not issue 1099-G to any medical leave (not family leave).

Per Revenue Ruling 2025-04 and according to the Washington State Department of Labor and Industries, an employer pays 26.78% and the employee pays 73.22% of PFML benefit, so only 26.78% (employer's contribution %) of the PFML benefit I have received as of 12/31/2024 should be taxable as my income, is that correct?

Thanks a lot.

Ask the Experts - Changes II - Mar 2025

Best answer by MAK70

Yes, the IRS correctly put out the guidance, but not in time for the states to report it correctly. I recommend entering the 1099-G, then putting an offset in Miscellaneous Income:

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 "Nontaxable PFML from 1099-G," then the amount as a negative number. Select Continue
On the Other Miscellaneous Income Summary screen, select Done

MAK70Answer

Yes, the IRS correctly put out the guidance, but not in time for the states to report it correctly. I recommend entering the 1099-G, then putting an offset in Miscellaneous Income:

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 "Nontaxable PFML from 1099-G," then the amount as a negative number. Select Continue
On the Other Miscellaneous Income Summary screen, select Done

SteveNKris

I'm afraid that you didn't read the original post correctly. The person did NOT receive a 1099-G from WA ESD. You advised entering the 1099-G and then entering an offsetting entry under miscellaneous income. That guidance doesn't work because that person (like me) does not have a 1099-G.

I guess the thing to do is find where to enter a 1099-G and hopefully there is a box there that says "I did not receive a 1099-G."