In 2018 I received third party sick pay through NJ short term disability. I paid Federal taxes on it but I live in New York. Is this amount subject to NY state tax?

[DanielV01]

Yes, provided that NY considers it taxable income (not all third-party sick pay is taxable.  If there is no information in Box 1, and Box 12 has a code of J, the income won't be taxable).  Since you are a NY resident, all of your taxable income is taxable in NY.  NY will give you a credit if any of your income also taxed in NJ. 

[fassobear]

Temporary Disability benefits and Unemployment Insurance benefits are not subject to the New Jersey state income tax.  Would this apply to New York state income tax as well?

[DanielV01]

New York taxes the benefit.  The following comes from this website:  <a rel="nofollow" target="_blank" href="https://www.growingfamilybenefits.com/short-term-disability-income-taxable/">https://www.growingfami...>

New Jersey
Both pre-tax employee and employer contributions fund New Jersey state temporary disability. Therefore, the claims payment is federal taxable income. Employers must send a separate W2 statement to affected employees each year. The benefits are not subject to New Jersey state income taxes.2

New York
New York State short-term disability benefits are taxed. Both employees and employers share in funding the premiums. Claims payments are therefore subject to taxation in proportion to the employer and employee contributions – if post-tax. The New York claims amount caps at $170.3

[fassobear]

Thanks, but those only answer for disability for that state that issued it.  Getting back to my original question, I live in NY and work in NJ.  In 2018 I received short term disability. I paid federal taxes on it.  The benefit is not subject to NJ state income tax.  I do not have my 2018 w-2 because it is being corrected to reflect this 3rd party sick pay so I do not know which box it will go on the w-2.  I need to file a new york state extension since the corrected w-2 will not be ready by april 15. So, with my NY extension I wanted to see if I needed to include an estimated payment.  That is why I am asking, Do I need to pay NY state income taxes on NJ state disability 3rd party sick pay income?

[DanielV01]

NY taxes the income.  It doesn't matter that it comes from NJ.  NY considers the income taxable.  You won't be taxed in NJ on this income, but you will be taxed in NY.

[fassobear]

ok thanks.  I will file with appropriate payment.

[LAYLA1]

How about the reverse situation.  I live in NJ and work in NY, and I had short term disability paid during 2019.  Is that taxable to both states?  

[DaveF1006]

No, it would be excluded in the State of New York if you live in NJ if issued by NJ.