Filing on disability

[grp1817]

I was put on disability this past year and received a W2 from the insurance company thats paying my claim. In box 1 it has $23,516.62 and in box 12a it has a J code plus $10,078.55. I was told I didn't have to report or file this W2. Do I have to claim it?

[LeonardS]

Yes, you have to report the W-2 on your tax return.  Box 1 $23,516.62 is your reportable Wages, tips other compensation. 

The $10,078.55 in Box 12 Code J is not subject to tax it is reported but not included in your taxable income.

[grp1817]

Thank you 

[grp1817]

I have another question about the child stimulus payment. Me and my wife received a letter saying we both received $750 monthly. I only received $250 a month the whole time and my wife is the kids step mother. And my wife didnt receive anything. But TurboTax said we have to put the amount stated in the letters($750 a piece).  In which would have been $1500 a month. Its making us claim money we didn't receive. How do we file it?

[AliciaP1]

The wording on the Letter 6419 for box 1 actually reads "Aggregate amount of AdvCTC payments you received for 2021".  The $750 shown on both the letters is splitting the $250/month you jointly received into the amounts to report for you and your wife.  At $750 each you received $1500 for the year (which is the $250 each month for the 6 months you received it).  

Enter the letters as shown so TurboTax calculates the $1,500 amount you already received and leaves the additional $1,500 you are eligible for in your refund calculation.