Taxability of PFML Benefits
What are the tax implications for PFML benefits?
The Massachusetts personal income tax implications of PFML benefits are governed by federal law. Federal law generally provides that gross income includes all income from whatever source derived. See Internal Revenue Code § 61(a). We understand that the IRS may be developing specific guidance as to the tax treatment to be afforded to PFML benefits. Given the current law, taxpayers should assume that all PFML benefits are taxable and report them as taxable income on their Massachusetts personal income tax returns, while the issuance of specific federal guidance is being considered.
Employees have the option when applying to have state and federal taxes withheld from their weekly benefit. If an employee chooses this option, DFML will withhold 5% for state taxes and 10% for federal taxes. These are reductions DFML has set, not the IRS.
If you choose to have taxes withheld (5% for state and 10% for federal), these percentages cannot be adjusted once your application is approved.
If you're unsure whether you want to withhold taxes, we recommend speaking with a tax professional about how IRS decisions could affect your personal tax liability. We cannot offer guidance or advice for individual tax situations.
Click here to find a tax professional to help with your taxes.
1099-G Tax Forms
The Department issues 1099-G forms to all employees who received PFML benefits in the prior calendar year. You will report the amount stated in box 1 of the 1099-G on your Massachusetts tax return for that year.
We will mail the form to the address we have on file for you based on what you told us in your application. In addition, you can download your 1099-G tax form by logging in to your PFML account. Learn more about how to download your tax form.
The 1099-Gs issued by Massachusetts PFML will show:
The Department's contact information-
Commonwealth of Massachusetts
MA Department of Family and Medical Leave
P.O. Box 838
Lawrence, MA 01842
The Department's Employer Identification Number (EIN)
Your name and address
The last 4 digits your Social Security Number
The amount of the PFML benefits you received in 2024 in “Box 1”
Additional Information
If you think the amount listed on your 1099-G form is incorrect:
Once you have your form, the benefit amount listed on the form should reflect your Massachusetts PFML payments during the calendar year. If you think this is inaccurate, please call the DFML tax line at 855-610-9905.
If you have received multiple 1099-G forms from Massachusetts:
If you received benefits from more than one program, you may receive more than one 1099-G. You can tell which form is for which program by looking at the Payer Information section of the form. If the payor is the Department of Unemployment Assistance, visit their tax page for more information.
If you haven’t received your 1099-G form:
If you received Massachusetts PFML benefits in 2024 and you have not received your form by mid February, please call the DFML tax line at 855-610-9905.
If you received a 1099-G form for PFML benefits but you did not file for or receive benefits:
You may be the victim of fraud. To report fraud to DFML:
- Call the Department’s Contact Center Fraud Reporting Line at (857) 366-7201
or
- Fill out the DFML Fraud Reporting form
Taxes on PFML benefits vs. contributions to the PFML Family and Employment Security Trust Fund:
- An individual must pay taxes on benefits if they received payments from PFML in a given calendar year.
- Contributions to the PFML Family and Employment Security Trust Fund are withheld from Massachusetts employees’ paychecks to fund the program. Most Massachusetts employers must make payroll withholdings on behalf of their workforce to comply with the Paid Family and Medical Leave (PFML) law.
| Date published: | April 1, 2022 |
|---|---|
| Last updated: | January 10, 2025 |