topic Re: W-2 Box 12 Code J in Get your taxes done using TurboTax

W-2 Box 12 Code J

user17689614380 — Wed, 21 Jan 2026 02:18:18 GMT

Hi folks, looking for some wisdom on this W-2 I got from disability:

Box 12 contains code J, and Box 13 has "Third-party Sick Pay" checked. However, there is indeed a positive amount in Box 1 that also shows up in Box 12 next to the code J. After this W-2 was added to TurboTax, I am seeing that this Box 1/12 amount was included in the "Taxable Income" total, and the estimated federal tax due increased. But I thought this amount would be non-taxable, and would not affect the total tax liability? Thanks all.

Re: W-2 Box 12 Code J

CAWells — Wed, 21 Jan 2026 16:15:14 GMT

Was your third-party sick pay policy paid for by yourself or by your employer?

If you paid for the policy, it isn’t taxable, even if you received a W-2. The income won’t need to be reported as long as you met the following requirements:

Box 1 is $0 or blank
Box 12 has code J
Box 13 has the ‘Third-party sick pay’ box checked.

If your employer paid for the policy, then your sick pay is taxable. You will need to include the information from the W-2 on your return.

Re: W-2 Box 12 Code J

AmyC — Wed, 21 Jan 2026 18:44:43 GMT

Box 1 is for taxable wages while box 12 code J reports the nontaxable amount. If your employer paid half of the premiums and you paid half, then your w2 is correct and the box 1 amount is taxable.

Contact the employer and determine if you paid the full amount or half of the premiums.

If you paid the full amount, the issuer needs to correct the form. Issue you a w2C.
If you paid half the amount, the form is correct and you have partially taxable income.

If you receive a w2, it must be entered for IRS computer matching so the form needs to be correct.

Re: W-2 Box 12 Code J

user17689614380 — Wed, 21 Jan 2026 21:20:47 GMT

Thank you so much. This is very helpful. My employer and myself indeed shared/co-paid the premium, and now I understand what each number means. But the issue is, the total benefits issued last year does not equal the sum of the Box 1 and Box 12 amounts.. So it's now a question for the insurance company to verify that these numbers are accurate.