A client was paid for maternity leave (FLI) from NY (state of employment) and is taxed on the NY tax return but the FLI is also flowing through Other Income on the NJ return (state of residence) where I do not believe it should be since FLI is not taxable in NJ. I tried to force a negative on the NJ return to eliminate it and it failed efile. Any suggestions on how this is removed from the NJ return?
On the Federal 1099G worksheet complete the payer info. The FLI benefit goes in line 1 (unemployment compensation) then check the box for Paid Family leave the software will do the rest.
Actually my mistake in explaining it. NY reported this on a 1099-MISC not a 1099-G so it is flowing to the NJ return. I tried to negative it out on the other income schedule of the NJ return but failed efile. I have now tried to override it and sent it again. So far, no fail.
