The IRS has not yet made a ruling on whether your PFML benefits are considered “taxable income.” Massachusetts tax treatment will follow the guidance provided by the IRS."

Massachusetts is providing 1099-G with Box 1 showing "Paid Family Medical Leave Benefit", though the taxability is still in question.  There is some discussion about the portion paid by the employee should not be taxable.

In Pro Series Basic, the 1099-G form lists Unemployment for Box 1.  If Box 1 is reporting payments from  the California paid family leave program,  this amount can be reduced by the contributions made by the employee to the program.

I would hesitate, this year, to report any reduced number that would cause a question at the IRS.

On the Massachusetts return there is a place to report the Full 1099-G income and the Taxable 1099-G income.

It would seem that a final determination has not yet been made by the IRS.  I'm holding off on filing a couple of clients returns at this time.