I am NJ resident, My w2 has third party sick box checked in block 13 and no entry in block 16. What should be my NJ taxable income? Block 1 shows some wages

Forum|Forum|6 years ago
June 6, 2019
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Best answer by DanielV01

Third-party sick pay is not taxable in NJ. It is taxable on the Federal return, which is why you see information in Box 1, and why you don't see information in box 16. But make sure on the W2 screen in TurboTax to check the Third-Party Sick Pay box so that it is excluded from your NJ income.

Here's a website with additional information: Nontaxable Income in NJ

DanielV01Answer

Employee

Here's a website with additional information: Nontaxable Income in NJ

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kris110154Author

Employee

Thanks for your response. I agree with you answer. However there seems some glitch in my Turbo Tax calculation. I made my W-2 input exactly as you advised above but Turbo Tax is including Block 1 wages in my NJ wages . There is no entry in block 16 and third party sick pay box is checked,

TAXus1

There is an amount in box 16 that is lower than box 1, 2, 3. Guess that amount would not be the “third party sick pay” subject to NJ taxes?

MayaD

The difference between Box 1 and Box 16 is the third party sick leave that is taxable on the federal return but excluded from NJ income. Make sure to check box 13 when you enter your W-2.

Unemployment compensation and temporary disability (including family leave insurance benefits) received from the State of New Jersey or as third-party sick pay are not taxable. Do not include these amounts on your New Jersey return. NJ.gov

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TAXus1

Yes, we are saying the same thing with different words.

Bottom line is that the amount shown in box 16 is subject to NJ tax because it is the difference between the Federal amount shown in box 1; 3; 5. Will have to confirm with the client that the time on sick pay was a limited amount of time and that why there is a difference in addition to any other deductions.

Other related question is why check box 13c in the W-2 in the program because whether it is checked or not. does not do anything in the program?

thanks

Leester

This just became an issue for 2024 NJ state taxes after the latest TurboTax update. Box 16 has an amount of $0 on my short term disability W2, but when I go to e-file, another check is run, and it says "Box 16 State Wages can not be less than State Withholding". There is a state withholding in box 17. This is preventing me from e-filing.

Last week, the final review passed without errors. No changes were made since then, other than TurboTax updating.