Hello,
Let me start by saying I filed an extension along with estimated taxes owed; however, I have not finalized my taxes for 2021.
This message contains multiple questions. I hope I am able to articulate them well enough!
- I am getting confused about whether or not my third-party sick pay is considered earned or unearned income. I am under retirement age. The insurance was paid for by my employer. I received a W-2 from the insurance company identifying the sick pay as income and taxes were withheld. I cannot find a clear-cut answer to the "earned" or "unearned" question neither within the IRS regs (Topics on LTD income seemed tied to SSDI--which I do NOT receive.) nor through my tax guy, my employer, or the insurance company. The answer determines if I erroneously contributed to my Roth IRA. If I should NOT have made a contribution (I did!), how do I fix that in TurboTax?
- I received a W-2 from my employer listing as income the taxable cost of group term life insurance >$50,000. Box 12 identifies the same amount coded as C. Box 12 also contains amounts identified as uncollected social security tax (12 M) and another for uncollected medicare tax (12 N).
Do I owe social security and medicare taxes on the "uncollected" taxes from my employer's W-2? If so, how do I pay them?
- I noticed the insurance company did NOT identify (collected OR uncollected) social security or medicare taxes on my W-2 for 2021. Do I owe social security and medicare taxes on the income shown on the insurance company's W-2? If so, how is this addressed in TurboTax?
Kind regards and many, many thanks for the help!
