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How do I enter in ProSeries that the income reported in box 3 of a 1099-MISC is non-taxable short term disability income?
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Click the WHERE DO I ENTER button on the toolbar and type in 1099MISC
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It takes me to the "Other Income Worksheet". That worksheet doesn't have the option of disability income. It just gives you an option "Other Income from box 3". The problem is that the program accepts it as taxable income.
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Why do you think its non taxable? Items reported on a 1099MISC are generally taxable or a 1099 wouldnt have been issued.
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My understanding from the client is that the money she received was from paid family leave and that the premium for was deducted from her weekly paycheck.
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The 1099 was issued by her employer? Did you see the check stub to see if it was pretax or post tax deduction?
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The 1099 was issued by the insurance company and the stub shows that it was post tax.
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Everything I see when I google it looks like its taxable income, but not taxable to your state....this is from NYs website
https://www.tax.ny.gov/pit/file/paid_family_leave.htm
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Thank you for your help.
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If correct client should contact employer and/or insurance company and get a corrected 1099. BTW, even if it is taxable it should be on a W-2 not a 1099.
The more I know the more I don’t know.
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