3rd Party Sick Pay reporting

rgcosta — Mon, 23 Feb 2026 12:07:27 GMT

Hello,

My son received money for Third Party Sick Pay. There is no Fed tax withheld, but there is an amount listed in Box 1 as well as SS Tax and Medicare tax withheld.

This amount puts him over the $4,400 where I could no longer claim him as a dependent.

Does the IRS consider this sick pay as wages?

Thank you.

Re: 3rd Party Sick Pay reporting

MaryK4 — Sun, 19 Feb 2023 20:28:19 GMT

Yes short-term disability payments (Third party sick pay) are included in gross income,

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3rd Party Sick Pay reporting

Re: 3rd Party Sick Pay reporting