long term disability box 12a (J) - nontaxable?

[weineinlee]

hello, I received Form W-2 from insured showing box 12a (J).  Please confirm this benefit is non-taxable when filing federal income taxes. 

[agarcia10]

Hi weineinlee, thank you for your question

Yes, is not taxable, per IRS code, third party sick pay is not taxable, remember you should enter the info from your W2 exactly as appear on the form, Turbo Tax will do the rest, and do the correct allocation and classification.

Is Code J W-2 taxable?

Third-party sick pay reported in box 12 with Code J is not taxable. (Additionally, a return containing a W-2 with $0 in box 1 would reject if e-filed.) Third party sick pay reported in Box 1 of the W-2 is considered taxable income and should be reported as such.