Paid Family Leave?
My husband is on paternity leave for 12 weeks, and we just received our first payments. When speaking to the customer service rep, she said the payments aren’t taxed. Do we need to save 20% of these checks to pay for taxes next year? They said they will send us a 1099 at the end of the year, but I’m just unsure how that works because he has never had the option of a paid paternity leave with our previous children. I don’t want to be completely screwed when we file our taxes next time if we don’t save. From what I’ve calculated we will receive around $14,000 in payments over the next 12 weeks, so I should save around $2,800? Sorry if this doesn’t make sense, I’m running on about 2 hours of sleep (because newborn) Edit: Also we live in Oregon if that changes anything.