Is New York Paid Family Leave taxable in New York state (or New Jersey where I live)? i need to file in both states but unclear on how the states treat this income.

Forum|Forum|5 years ago
February 27, 2021
2 replies
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I received NYPFL this year as my employer is in NY and I live in NJ. I file both forms and there is some reciprocity between the states for income taxes. Is this treated as taxable income on both forms?

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LenaH

New York and New Jersey does not have a reciprocity agreement. If you live in New Jersey, your entire income is taxable in New Jersey. Then, on your non-resident return for New York, you will pay tax on your New York sourced income. New Jersey will then credit you on your resident return for the taxes paid to New York.

As a nonresident of New York State, you are subject to New York State tax on income derived from New York State sources. Since your paid family leave solely resulted from your employment in New York State, then it would be reported on your nonresident return.

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Anonymous

Ok, I will put it on the NY filing but should it also be on the NJ filing? Is this income subject to tax in NJ? I read they don’t take Paid Family Leave.

ErnieS0

New York and New Jersey treat family leave differently. PFL is taxable to NY but not to NJ. As a result, you will be taxed on PFL on your nonresident NY income tax return. However, the amount should not show up on your NJ resident tax return. And you would not be able to claim a credit for NY tax paid on PFL.

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Lawrence V

I received a 1099-G from NYS reporting paid family leave benefits that I received. The payer is the New York State Insurance Fund which has a payer tax ID different from the NYS department of labor which pays actual unemployment benefits. After I entered the 1099 information, TurboTax wants to change the payer tax ID to the NYS DOL number and will not let me leave as is. This seems incorrect.

Help!