Hello in 2021 i paid for short term disability insurance coverage. I have paychecks as records showing the deductions from my pay for the specific short term disability insurance coverage. But it looks like the TurboTax Deluxe program is including the wages in my federal taxable income, below are the specifics:
-I went out on leave in 2021 and thus I received the W2 from the insurer with zero federal income tax withheld in box 2, they also confirmed that no federal withholding will be made unless the receiver of the benefits will be liable to pay federal taxes on wages received.
-When i enter the W2 into turbo tax deluxe i can see my federal tax due increasing as a result of zero withholding. But when i research this topic since i personally paid for coverage i should not be required to pay taxes on the short term disability wages. 3rd party sickpay is checked in boxes 13 and 14 on the W2. I've also checked the box on turbo tax screen that this W2 represents "paid family leave".
My question is how do i adjust turbo tax to not include these wages in my federal taxable income? Since i paid for coverage, it should not be included in my taxable income. I've gone through the federal review and adjustment screens and it looks like no adjustment was made.
Thanks for your help in advance!!!
