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Level 2
January 31, 2024
Question

WA Cares Payroll Deduction

  • January 31, 2024
  • 3 replies
  • 76 views

Are the payroll deductions for WA Cares deductable on Federal Tax Returns?

    3 replies

    Alumni - Intuit
    January 31, 2024

    Is it not listed on  your W2 in Box 14?

     

    Automatically contribute 0.58% of your paycheck to the fund during your working years, starting in July 2023. After contributing for 10 years (or less if you are nearing retirement or have a sudden need), you can access your benefit when you need care.

     

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    MUIBLAuthor
    Level 2
    January 31, 2024

    Yes, it is, but the Turbo Tax has a dropdown menu with several options, one as a "payroll tax" and another as "unlisted". They also have numerous options for various programs run by other states, but WA Cares was not listed.  I would think it should be.   I went to the WA Cares site and they call it a "contribution", and they have no comments on this in their FAQ.   So is it a contribution or a tax?  Anti-tax activists call it a tax, but what does the IRS call it?

    Alumni - Intuit
    January 31, 2024

    Yes, you should select "Other" as the code for WA Cares contributions. 

     

    The program is for long term care insurance, so it isn't a tax. Follow this link to learn more about the program. 

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