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March 10, 2025
Question

Medical Cash in Lieu on W-2

  • March 10, 2025
  • 1 reply
  • 0 views

Retired, moved out of state, but got a cash in lieu of medical coverage monthly to purchase my own insurance.  However, I received this reported on a W-2.  Does this mean I have to file taxes with that state, even though I don't live there and I am a resident in a different state?

1 reply

March 10, 2025

It would depend on the tax laws in that state, but generally income reported on a W-2 form would be taxable to the state listed in box 15 on the W-2 form, with state wages listed in box 16. Depending on the state you moved to, you can typically get a credit for any taxes paid to another state so you don't end up being double taxed on the same income.

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