Heart and Lung Wages - PA

[SCinPA610]

I am a police officer and received Heart and Lung wages from my employer. These wages did not have any taxes withheld ("full salary"). I have now received my W-2 and the Heart and Lung wages were included into my taxable wages for federal, social security, medicare, state and local. It was my understanding that these wages were not taxed.

Is the W-2 correct? If the Heart and Lung wages must be taxed, which taxes must be withheld?

If the Heart and Lung wages should be deducted from my W-2, how is this done within the Desktop program?

[LindaS5247]

No, your benefits from the Pennsylvania Heart and Lung Act are not taxable. This includes full salary and medical expenses. 

If you believe your Form W-2 was issued incorrectly, you should talk to your employer and get a corrected Form W-2.
 

Click here for How do I import or enter my W-2?

[SCinPA610]

Thank you. Does this apply to all categories of wages? Federal, social security, Medicare, state and local. No taxes across all?

We do contribute to social security if that changes anything.

[LindaS5247]

Pennsylvania Heart and Lung Act benefits are not subject to Medicare or Social Security taxes. They are also exempt from federal, state, and local income taxes