@JeffCPA @IRonMaN I agree with Iron Man's comments and yours Jeff, you have to find out what those payments on the 1099 miscellaneous forms are for. I can't remember ever seeing sick pay on a 1099 miscellaneous, I always remember seeing them on a W-2. There is a note that I made on March 10th in my important note files: "Third party sick pay/disability is not taxable income for PA and local (for third party sick pay reported on W2)". PA Department of Revenue has a question and answer forum, and you can see previous questions and the answers, I would go on that and see what you can find, maybe someone had a 1099 miscellaneous similar to this.