Spouse was injured and out of work for several months and still paid, untaxed. Do we still enter from box 1? Or does box 1 only show compensation from when he wasn't injured and still working?
Enter your W-2 exactly as it appears. Box 1 shows his total gross wages; box 2 shows the amount of federal tax withheld. Do not try to do any "do-it-yourself" calculations with the W-2.
Thank you so much for your response! I am asking this because the amount in box 1 is almost half of my spouse's normal salary, and from his other past W2's. I read this from another post:
"Your Line of Duty Injury pay is treated as a pre-tax amount, which means it was deducted from your total wages before the calculation of taxes to be withheld. It is not included in your Box 1 wages."
I assumed that since he was out for about 5 months it was not calculated in that, so I was thinking the lower amount in Box 1 was only for the other 7 months he did work? When I entered the amount in box 1 for that question, it increased the state refund by almost 2 thousand dollars. I am just worried that is not right? I appreciate your time and help!!!
As @xmasbaby0 wrote, enter the W-2 as it is. Since your husband was out of work for Line of Duty injury pay, there would be a smaller amount in Box 1 wages. This is right.