My wife's company uses a 3rd party(LINCOLN LIFE ASSURANCE) to administer paid family leave (maternity leave, in her case). LINCOLN sent us a W-2 form with:
- Box1 blank
- PFL amount entered in Box12 using Code J
- Box13 checked for Third-party sick pay
I entered the W-2 info in TurboTax and then selected the box to designate PFL as being included. I expect that the PFL amount in Box12 needs to be taxed federally. However, adding this W-2 did not change my wife's income and had no impact on our federal return. How can this issue be addressed? (I wish I could truly just skip paying the tax, but surely the feds will want this money)
