At present, 13 states plus DC have a paid family medical leave program (PFML).
Whether PFML taxable income must be reported for federal and/or state tax purposes depends 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 formal guidance on whether paid family medical leave (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.
Tax preparers should review state-specific guidance to determine whether PFML taxable income must be reported on the taxpayer’s return.
Additional Information: