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Is Third Party Sick Pay for year 2016 taxable in NJ?
I am a NJ resident. For 2016 I received Third Party Sick Pay from Insurance Company & got Form W2 in which Third Party Sick Pay box is checked in Box 13 and amount of Third Party Sick Pay I received is also reported in box 16 as State wages, tips, etc. I read following on NJ Treasury website :
"Unemployment compensation is not taxable. Do not include these amounts on the New Jersey Income Tax return. Likewise, temporary disability (including family leave insurance benefits) received from the State of New Jersey or as third-party sick pay should not be included on the New Jersey Income Tax return."
So my question is what should I put in box 16 while preparing my tax return for NJ state? Should I put zero dollars or should I report the amount reported in box 16 on W2 form?