Is 3rd Party Sick Pay taxable?

[LinaJ2018 · Accepted solution]

It depends on whether you paid for the cost ( premium) of the policy, or your employer paid for the policy.

If you paid for the policy: Your third-party sick pay is not taxable.

• You might still receive a W-2, but you do not need to report the W-2 as long as all of the following apply:
  • Box 1 – Wages – is $0 or blank 
  • Box 12 has Code J
  • Box 13 – Nontaxable sick pay: This box is checked.

If you receive a W-2 like the above, do not 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 will receive a W-2 with taxable wages in Box 1, and you will include this W-2 in your return.

[TurboAlan]

I just saw this post...

I paid 100% of the premiums, but the codes in Box 12 are:  a,b,c,d,e (not J).

Next to Code A is the amount of Sick Pay they paid.

Box 13 does have THIRD-PARTY SICK PAY checked.

What the heck do I need to do?

Thank you for any help!

Alan