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Temporary Disability benefits (including family leave insurance benefits) are not subject to the New Jersey state income tax according to NJ Dept of Taxation FAQs.
In New Jersey, temporary disability benefits are treated in the same manner as third-party sick pay. If you receive these types of benefits, they are subject to Social Security withholdings. At the end of the year, you will receive a W-2 listing the amount of sick benefits received, since they are taxable under federal law.
WHAT IF YOU HAVE NOT RECEIVED ANYTHING FOR THE STATE OR EMPLOYEE REGARDING THE DISABILITY? WHAT DO YOU DO TO FIND THE INFOR
If you received temporary disability insurance benefits in 2022, your employer will report the taxable portion of your benefits on your 2022 Form W-2.
If you haven't received your Form W-2, you should contact your employer immediately to get a copy. You also may be able to get your information from the IRS. Please see the TurboTax Help article What if it's February but I still don't have my W-2? for guidance.
If your Temporary Disability benefits aren't reported on your W-2 -- they're often reflected as "third party sick pay" or "other wages" -- you should contact your employer directly to have it corrected. Please see Is Your W-2 Missing Temporary Disability Tax Information? in the How Temporary Disability Benefits Are Taxed dropdown on the New Jersey Department of Labor and Workforce Development's Temporary Disability Insurance page.
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