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Level 1
January 31, 2020
Solved

Third-party sick pay California

I received a W2 from an insurer because I went on maternity leave last year. I followed the instructions on here but I'm confused because my W2 has the box 1 filled but also has box 12 and 13. It does not have boxes 16,17,18. What's the tax category in box 14 in TurboTax? Is this taxable in CA? In summary:

 

  • Box 1 – Wages is NOT BLANK.
  • Box 12 has Code J with an amount $700 less than Box 1.
  • Box 13 – Nontaxable sick pay is checked.
  • Box 14 - Third Party sick pay and amount from Box 1

Thank you!

    AmyC
    AmyCAnswer
    Alumni - Intuit
    February 7, 2020

    Paid family leave is not taxable in CA so all the state information is blank.

     

    Code J in Box 12 is nontaxable sick pay.

    Box 14 is other information, which in your case is just more repetition.

     

    All together, you will have $700 of taxed wages and the rest will be non-taxed sick pay.

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    5 replies

    AmyC
    AmyCAnswer
    Alumni - Intuit
    February 7, 2020

    Paid family leave is not taxable in CA so all the state information is blank.

     

    Code J in Box 12 is nontaxable sick pay.

    Box 14 is other information, which in your case is just more repetition.

     

    All together, you will have $700 of taxed wages and the rest will be non-taxed sick pay.

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    Level 2
    March 24, 2020

    I was on maternity leave in 2019 and received W2 from the insurance company, with box 13 third party sick pay checked, 14 as 100%, and the wages are the same for Fed as well as California.  Is this considered paid family leave and not taxable in California?  My company paid for few weeks of paid maternity leave (included in my W2), are any of these taxable (Fed and California)?

     

    Thank you

    Vee

    Alumni - Intuit
    March 24, 2020

    Yes.  It is taxable income, that's why it is reported on a W-2.  

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