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February 19, 2023
Question

3rd Party Sick Pay reporting

  • February 19, 2023
  • 1 reply
  • 0 views

Hello,

 

My son received money for Third Party Sick Pay.  There is no Fed tax withheld, but there is an amount listed in Box 1 as well as SS Tax and Medicare tax withheld.

 

This amount puts him over the $4,400 where I could no longer claim him as a dependent.  

Does the IRS consider this sick pay as wages?

 

Thank you.

    1 reply

    February 19, 2023

    Yes short-term disability payments (Third party sick pay) are included in gross income,