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Fix the problem with family leave benefits reported on a 1099MISC being shown as taxable on NJ return

540 Middlesex
Level 2

This is a known issue.  Other users have reported it.  

NY reports family leave benefits on a 1099MISC. Proseries shows them as taxable on the NJ return, however they are not taxable to the state of NJ.  There is no way around this.  You can't zero it out and efile.  I tried deleting the line, but the return was efiled and the client got a letter because proseries put the income back after I printed the return.  I also put $0 income in the NJ state box but it still puts it on the line.

You need to have a box on the 1099misc for Family leave benefits so that the amount won't show up on the NJ return, or some other way to remove it from the NJ return and still be able to efile.

If you override, it works but the NY NJ credit form is still incorrect

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1 Comment 1
IntuitGabi
Community Manager
Community Manager

Hi @540 Middlesex I sent you a private message to gather more information on this.