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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
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
Problem still occurs in TurboTax Premier 2019. Thank you for your help! Putting in a "0" did the trick and it also enabled the software to record the Payor's state ID code where it didn't save it before. Kinda ticked off at TurboTax programmers on this one. Your answer saved us ALOT of money!
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?
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
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
Your employer completed the W-2 correctly, so you are correct in stating that the tax returns will not change. However, it will explain the difference in state income.
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