TomD8
Level 15

State tax filing

@FEDRED -- "In lieu of wages" usually means that the recipient is still considered employed by the employer, and has not been retired or otherwise terminated.   Thus the disability payments are "in lieu of" or in place of his normal wages.  Disability payments received after the employee has retired or otherwise ended his employment would no longer be "in lieu of wages."

**Answers are correct to the best of my ability but do not constitute tax or legal advice.