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1099-G Box 10: Family Leave Benefits & 2026 Tax Rules

1099-G Box 10: Family Leave Benefits & 2026 Tax Rules

2026 Form 1099-G Update

The December 2026 revision of Form 1099-G adds a new Box 10 for family leave benefits paid through governmental paid family and medical leave programs. Here is what the box means, when reporting is required, how the federal tax treatment works, and what recipients and authorized filers should do next.

Updated: September 2026 Reviewed against: IRS Form 1099-G Rev. 12/2026 Tax year covered: 2026
Quick answer: Box 10 on the December 2026 Form 1099-G reports family leave benefits paid by a governmental paid family and medical leave program. For 2026, the IRS guide lists a $2,000 reporting threshold for governmental paid family leave payments. Family leave benefits are generally included in federal gross income, but Revenue Ruling 2025-4 says they are not wages for federal employment-tax purposes. The revised form is used to report 2026 information in early 2027.

I received a 1099-G

Use the form to understand the government payments reported to you. If Box 10 looks wrong, contact the government agency that issued the form rather than creating a replacement yourself.

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I need to prepare a 1099-G

If you are an authorized government payer or filing agent preparing a legitimate Form 1099-G, use the current December 2026 layout and place qualifying family leave benefits in Box 10.

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What changed on Form 1099-G for 2026?

The IRS revised Form 1099-G in December 2026 to add Box 10, Family Leave Benefits. The change follows federal guidance requiring states to report family leave benefits paid through state paid family and medical leave programs.

The same revision also moved the state-information fields that previously occupied the Box 10 area. State fields that were formerly labeled Boxes 10a, 10b, and 11 are now Boxes 11a, 11b, and 12.

Form area Older layout December 2026 layout
Box 10 State information appeared in the Box 10 area Family Leave Benefits
State abbreviation Box 10a Box 11a
State identification number Box 10b Box 11b
State income tax withheld Box 11 Box 12
Important: The IRS says the December 2026 revision should be used for 2026 information filed in early 2027. Do not use that revision for an earlier tax year.

What goes in 1099-G Box 10?

Box 10 is for the total family leave benefits paid to a recipient under a governmental paid family and medical leave program when the amount meets or exceeds the applicable reporting threshold.

The amount reported in Box 10 is the total family leave benefit before any income tax withheld. If federal income tax was withheld at the recipient's request, that withholding is reported separately in Box 4. For a broader explanation of how federal withholding works, see what FIT or FWT means and how federal income tax withholding works.

Examples of family leave

Family leave programs commonly cover situations such as bonding with a new child or caring for a family member with a serious health condition. Program definitions vary by state, so the state agency's rules still matter when determining whether a payment is family leave, medical leave, or another benefit type.

What is the 2026 reporting threshold for Box 10?

For tax year 2026, IRS Publication 1099 lists a $2,000 reporting threshold for governmental paid family leave program payments reported on Form 1099-G. The same IRS publication notes that this threshold is adjusted for inflation beginning in calendar year 2027.

Example: If a governmental PFML program pays a recipient $3,400 of reportable family leave benefits during 2026, the payment exceeds the 2026 $2,000 reporting threshold. The total qualifying family leave benefit is reported in Box 10. Any federal income tax withheld at the recipient's request is reported separately in Box 4.

Are family leave benefits in Box 10 taxable?

For federal income-tax purposes, Revenue Ruling 2025-4 says family leave benefits paid under the modeled state PFML program are included in the recipient's gross income.

However, the same ruling says those family leave benefits are not wages for federal employment-tax purposes. That distinction matters because income can be taxable without being treated as wages subject to the ordinary federal payroll-tax rules. If you want to understand that difference more clearly, our guide to taxable wages and why taxable income can differ from payroll wages explains the underlying wage concepts.

Question Family leave benefits
Included in federal gross income? Generally yes under Revenue Ruling 2025-4.
Treated as federal employment-tax wages? No for family leave benefits under the ruling.
Reported on 1099-G for 2026? Yes, when the governmental payer's reportable family leave payments meet the applicable threshold.
Can federal income tax withholding appear? Yes. If withheld at the recipient's request, it is reported in Box 4.

Family leave and medical leave are not taxed the same way

Do not assume every PFML payment follows the same federal tax treatment. Revenue Ruling 2025-4 treats family leave differently from certain medical leave benefits.

Medical leave can depend on who funded the program contribution and whether an exclusion applies. Notice 2026-6 extended the transition period through calendar year 2026 for certain requirements involving medical leave benefits attributable to employer contributions.

Why this matters: A recipient can receive benefits from the same state PFML program but have different tax treatment depending on whether the payment is family leave or medical leave. Box 10 specifically addresses family leave benefits on the revised 1099-G.

How state paid-leave rules can differ

Federal treatment provides the starting point, but state income-tax rules and program procedures can differ. Three 2026 examples show why recipients should check both the IRS rules and their state program's guidance.

State example Current published guidance
California California EDD says Paid Family Leave benefits are reportable for federal tax purposes but are not reportable as California state taxable income.
Massachusetts Massachusetts says 100% of family leave benefits paid in 2026 are taxable for federal and Massachusetts income-tax purposes.
Maine Maine says family leave benefits are taxable income but are not wages. Its 2026 guidance also reflects the federal transition treatment for medical leave.

State help pages can also describe prior-year versions of Form 1099-G. If a state article still refers to family leave in an older box, confirm the tax year. The IRS December 2026 revision is the version designed for 2026 information filed in early 2027.

Box 10 vs. Box 1: what is the difference?

Box 1 is for unemployment compensation. Box 10 is now specifically for family leave benefits paid under a governmental PFML program.

This separation is useful because older state systems and older 1099-G instructions sometimes placed family-leave amounts elsewhere. For 2026 reporting on the revised federal form, the IRS created a dedicated family-leave box so the payment type is clearer.

Box What it reports Common search question
Box 1 Unemployment compensation Why did I get a 1099-G for unemployment?
Box 4 Federal income tax withheld Was federal tax already withheld?
Box 10 Governmental family leave benefits Why are family leave benefits on my 1099-G?
Boxes 11a-12 State information and state tax withheld Where did the old state boxes move?

What should I do if I received a 1099-G with Box 10?

Check the payer. Confirm the form came from the governmental paid-leave program that issued your benefits.
Compare the payment total. Review your 2026 benefit records and make sure the Box 10 amount matches the reportable family leave paid to you.
Check withholding. If you elected federal income-tax withholding, review Box 4.
Use the correct 2026 tax-return instructions. The 1099-G is an information return. Use the applicable 2026 Form 1040 and schedule instructions when preparing your 2026 federal return. If you are comparing the 1099-G with other income records, see our guide to what counts as proof of income.
Request a correction from the payer if needed. If the amount, taxpayer information, or benefit type is wrong, contact the issuing government agency.
Do not create your own replacement 1099-G simply because you received an incorrect one. The payer that filed the information return should correct inaccurate reporting. If you need to document benefits or other income for a landlord, lender, or program, use the original government records and review our guide to proving income without pay stubs.

What if I am an authorized payer preparing Form 1099-G?

Form 1099-G is filed by federal, state, or local government units for specified government payments. If you are the authorized payer or filing agent, the December 2026 revision should be used for 2026 information. For readers comparing different 1099 documents and what they can establish, our guide to 1099 forms as proof of income explains how 1099 records fit into a broader documentation package.

For family leave benefits, enter the total qualifying amount in Box 10 when the payment meets the applicable reporting threshold. Enter federal income tax withheld at the recipient's request in Box 4, and use Boxes 11a through 12 for applicable state information.

Preparing a 2026 Form 1099-G?

The ePaystubs 1099-G generator uses the current December 2026 layout, including Box 10 for Family Leave Benefits and the renumbered state-information fields. Authorized filers can enter payer and recipient information, review the form, and preview the completed document before continuing.

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When is a 2026 Form 1099-G due?

IRS Publication 1099 lists the normal recipient deadline for Form 1099-G as January 31, with paper filing generally due February 28 and electronic filing generally due March 31. When a due date falls on a weekend or legal holiday, the deadline moves to the next business day.

For the 2027 filing season, January 31, 2027 falls on a Sunday and February 28, 2027 also falls on a Sunday. That means the corresponding normal deadlines move to the next business day, subject to final IRS filing-season guidance.

Common 1099-G Box 10 mistakes

  • Using an older form layout. The December 2026 revision added Box 10 for family leave and moved the state fields.
  • Putting medical leave in Box 10 automatically. Medical leave has separate federal tax considerations.
  • Reporting the amount after withholding. Box 10 uses the total family leave amount before income tax withheld.
  • Forgetting Box 4. Federal income tax withheld at the recipient's request belongs in Box 4.
  • Using a 2026 form for a prior year. The IRS says the December 2026 revision should not be used for earlier tax years.
  • Having the recipient recreate a correction. Corrections should come from the payer that filed the original information return.

1099-G Box 10 FAQs

What is Box 10 on Form 1099-G?

On the December 2026 revision, Box 10 reports family leave benefits paid through a governmental paid family and medical leave program when the amount meets the applicable reporting threshold.

Why is Box 10 different on the 2026 form?

The IRS added a dedicated family leave benefits box following federal PFML tax guidance. The old state-information fields were renumbered to Boxes 11a, 11b, and 12.

What is the 2026 1099-G family leave reporting threshold?

IRS Publication 1099 lists $2,000 for governmental paid family leave program payments for 2026. The threshold is subject to inflation adjustment beginning in 2027.

Are Box 10 family leave benefits taxable?

Revenue Ruling 2025-4 says family leave benefits under the modeled state PFML program are included in federal gross income, but they are not wages for federal employment-tax purposes.

Is medical leave reported in Box 10?

Box 10 is labeled Family Leave Benefits. Medical leave can have different tax and reporting treatment, including transition rules extended through 2026 for certain employer-funded medical leave benefits.

Where is federal income tax withholding shown?

If federal income tax was withheld at the recipient's request, the withholding amount is reported in Box 4.

Can I create a corrected 1099-G if I am the recipient?

If you received a form with incorrect information, contact the government agency that issued it and request a correction. Recipients should not create a replacement information return on behalf of the payer.

Can ePaystubs help an authorized payer prepare Form 1099-G?

Yes. The ePaystubs 1099-G generator is built on the current December 2026 form layout and can be used by an authorized filer to prepare and preview the document. The user remains responsible for accurate information and any filing requirements.

Need a different tax form?

If Form 1099-G is not the right form for the payment you are reporting, compare the available 1099 generators or browse the full ePaystubs tax-form collection before you start.

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Official sources reviewed

Educational use only. ePaystubs provides document-generation software and educational information. This page is not tax, legal, or financial advice and is not affiliated with the IRS. Tax treatment can vary by taxpayer and state. Verify current requirements with official government instructions or a qualified tax professional before filing. All forms should contain true and accurate information.
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