At present, 13 states plus DC have a paid family medical leave program (PFML).
The question of whether or not PFML payments are taxable for federal and/or state purposes may hinge on several factors:
- Whether the program is funded by the employer, the employee, or both.
- The reason for leave being taken.
- State law.
As of the end of 2024, the IRS has not issued guidance on whether PFML payments are taxable for federal purposes.
If the taxpayer received PFML, preparers should research the state's individual tax return instructions to determine whether the state taxes PFML. You can navigate to the state instructions by starting with the state knowledgebase link below.
Additional Information: