GeoffreyG
New Member

Retirement tax questions

Hello 62468_03511:

You are correct that you do not need to include this W-2 with your tax return, as it will not impact your tax liability (or income tax refund) in any way whatsoever.

W-2, Box 12, Code J is for Nontaxable Sick Pay.  The corresponding check mark that you see in Box 13 confirms that it is nontaxable "Third-Party Sick Pay" income.

Please do not be unnecessarily confused here.  SunLife of Canada (the third-party insurance company in this case) has a legal compliance obligation to report this information by sending you a W-2 like this (and also informing the IRS about it).

However, you do not have any similar reporting obligation to enter the data in any way onto your personal tax return (or into the TurboTax program software).  You can simply "ignore" this particular W-2 . . . although you may want to keep a copy of it, along with your other tax records, for your own protection in the highly unlikely event of an examination of your tax return.  Such a W-2 document from SunLife would be your "proof," to a tax auditor, that the income you received is indeed nontaxable.

Thank you for asking this important question.

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