Are you sure it's not taxable?
"Taxability of PFML Benefits
As of 2023, 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.
Employees have the option when applying to have state and federal taxes withheld from their weekly benefit. If an employee chooses this option, DFML will withhold 5% for state taxes and 10% for federal taxes. These are reductions DFML has set, not the IRS."
From: https://www.mass.gov/info-details/taxes-on-paid-family-and-medical-leave-pfml-benefits
Have you seen a ruling letter?
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