Taxpayers who receive State Paid Medical Leave is reported on a 1099-G for family medical leave and is fully taxable. Those who receive medical leave pay for themselves say had surgery are reported on a 1099-MISC. This is paid into the State (of Oregon) .006 of the wages from the Employee AND if employer has more than 25 employees, then Employer pays .004 into this fund.
Taxpayer's are receiving this taxable benefit. My question is about the amount the EMPLOYEE has paid in with THEIR AFTER TAX DOLLARS. So example above, 60% is paid by the employee. Now they came out with Rev. Rul. 2025-4 and mentions that "The amount attributable to the employee's portion of the contributions is excluded from the employee's gross income." I don't see clear instructions on how to make the adjustment. I am guessing and again guessing that this amount on the 1099-MISC say $10,000 is reported on Sch 1 page 1. Then make an adjustment on page 2. WHAT would that adjustment exactly be? I don't see how we calculate that. I am guessing that maybe 60% would be the adjustment. So of the 10,000 then $6,000 would be adjusted on page 2 of Sch 1.
Anyone know how to make the adjustment? TIA
Taxpayer's are receiving this taxable benefit. My question is about the amount the EMPLOYEE has paid in with THEIR AFTER TAX DOLLARS. So example above, 60% is paid by the employee. Now they came out with Rev. Rul. 2025-4 and mentions that "The amount attributable to the employee's portion of the contributions is excluded from the employee's gross income." I don't see clear instructions on how to make the adjustment. I am guessing and again guessing that this amount on the 1099-MISC say $10,000 is reported on Sch 1 page 1. Then make an adjustment on page 2. WHAT would that adjustment exactly be? I don't see how we calculate that. I am guessing that maybe 60% would be the adjustment. So of the 10,000 then $6,000 would be adjusted on page 2 of Sch 1.
Anyone know how to make the adjustment? TIA