Medical Cash in Lieu on W-2

Retired, moved out of state, but got a cash in lieu of medical coverage monthly to purchase my own insurance. However, I received this reported on a W-2. Does this mean I have to file taxes with that state, even though I don't live there and I am a resident in a different state?

819

Expert Alumni

Mar 10, 2025 1:36:43 PM

It would depend on the tax laws in that state, but generally income reported on a W-2 form would be taxable to the state listed in box 15 on the W-2 form, with state wages listed in box 16. Depending on the state you moved to, you can typically get a credit for any taxes paid to another state so you don't end up being double taxed on the same income.

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Medical Cash in Lieu on W-2