When i enter my w2 info for my disabilty - its coded as non taxable sick pay. yet I am still being taxed on it.

[ugotmarks]

What am i doing wrong?

[KatrinaB48]

If box 1 on your W-2 is empty and box 12 has a code J (third party sick pay), then you should not include this W-2 on your tax return. Your employer was required to issue a W-2 for record-keeping purposes. Please follow the directions below to delete the form from your return:

1. Log in and open your return
2. Type W2 into the search field (right top screen)
3. Click the jump to W2 link in the search results
4. You are now on the screen where you can delete your W-2 form

Please view this TurboTax FAQ for more information about sick pay benefits.

[cleech2012]

With my 2020 joint tax return this was NOT an issue. I was able to show the "third party sick pay W2".

With my 2021 joint tax return, turbotax keeps telling me, on Feb 1, 2021 with the most recent updates to turbotax applied, that my W2 with the third party sick pay "needs review". I am very close to being able to submit 2021 taxes and get a refund and would like to resolve this issue asap.

I see the comment of "do not apply this W2 or remove this W2 but I did NOT have to remove the third party sick pay with my 2020 tax return??

Why is turbotax different with the 2021 tax return software??? would like to know this!!!

[MarilynG1]

If your W-2 has a $0 or is Blank in Box 1, you don't need to enter it in TurboTax.  Just keep it for your records.

Click this link for more info on Third Party Sick Pay.