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February 20, 2020
Question

Nontaxable Disability W2

  • February 20, 2020
  • 1 reply
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I have a 3rd Party W2 that shows only $538.00 in Box 1, 3, and 5 - and Box 12 is coded J (nontaxable). Box 13 is checked "Third-party Sick Pay."  When I include this W2 in Turbo Tax, it naturally adds this amount to my regular income.  No tax was withheld.  What should I do?  Include it in Turbo Tax because Box 1 is checked, or assume since it's nontaxable it was sent for my information only.?  I don't want to pay tax on this twice.

Thanks

 

    1 reply

    February 20, 2020

    You are correct that you don't need to enter this W-2 in TurboTax.  Just keep it for your records.

     

    Click this link for more info on W-2 with Non-Taxable Sick Pay.