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June 1, 2019
Question

I was off work for surgery and received short term disability. is this considered paid family leave?

  • June 1, 2019
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Employee
June 1, 2019

Paid family leave is on form 1099-G. To enter form 1099-G, click on Where do I report a 1099-G for unemployment or paid family leave?


This may be considered short term disability.  "A Form W-2 must be prepared even if all of the sick pay is nontaxable (see Box 12 below). All Forms W-2 must be given to the employees by January 31." this is from the IRS website. http://www.irs.gov/publications/p15a/ar02.html#en_US_2014_publink1000169582

Whether the payments are taxable depends on how and when they are paid. If all or a portion is taxable, the taxable portion will be reported on your W-2 that is issued by your employer, or reported on a Form W-2 issued by the insurer. 

If you and your employer share the cost of a disability plan, you are only liable for taxes on the amount received due to payments made by your employer. 

1.     If you pay the entire cost of a sickness or injury plan with after-tax money, you do not need to report any payments you receive under the plan as income.

2.     If your employer pays half the cost of premiums and does not deduct these payments from your pay, then you most likely must report half the payments received as income.

3.     Reimbursement of medical costs you’ve paid for after the plan was established are not taxable, but may reduce the amount of your medical costs deduction.

See the following TurboTax article for additional information:  Are Short Term Disability Claim Payments ... - TurboTax - Intuit


If you received a W-2 for a third party sick pay, with no amount in box 1 for wages and the income is reported in box 12 with code of J:

Non-taxable sick pay is not subject to taxation. It does not need to be reported on your income taxes. Your employer was required to generate a W2 with the figure, which is why you received it. So basically you do not need to file this return, per IRS.