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It depends- if it was third party sick pay, it depends on whether you paid for the cost of the policy or your employer paid for the policy.
If you paid for the policy: Your third-party sick pay isn't taxable.
If you receive a W-2 like the above, don't include it in your return. If you try to e-file and include this W-2, the IRS will reject your return.
If your employer paid for the policy: Your third-party sick pay is taxable. You'll receive a W-2 with taxable wages in box 1 and include this W-2 in your return.
Is third-party sick pay taxable?
It depends- if it was third party sick pay, it depends on whether you paid for the cost of the policy or your employer paid for the policy.
If you paid for the policy: Your third-party sick pay isn't taxable.
If you receive a W-2 like the above, don't include it in your return. If you try to e-file and include this W-2, the IRS will reject your return.
If your employer paid for the policy: Your third-party sick pay is taxable. You'll receive a W-2 with taxable wages in box 1 and include this W-2 in your return.
Is third-party sick pay taxable?
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