My W2 reflects some income that is non-taxable. Where do I enter that income on turbotax?

[LinaJ2020]

What type of non-taxable income you are speaking about?

Please provide more information. 

[lfdmike]

I work for the City of Columbus Fire Department. I was injured on a fire and off work for 4 months, the salary I earned while on injury leave is not taxable. The City payroll department treats it like regular income and issues a letter at the end of the year stating the total income earned while injured.

Thank You 

Mike 

[KarenM90]

Can you clarify? 

Where does this non-taxable income appear on your W2?  Is it in Box 14?  If so, what is the description?

[lfdmike]

It appears in box 1

In years past it on Turbotax it would have been entered as a misc 1099, but as negative income.

This year Turbotax will not allow this....if we cant find an answer can i get a refund?

It wasn't until after I paid that Turbotax told me that I couldn't file 

Thanks 

[LeonardS]

Your post "The City payroll department treats it like regular income and issues a letter at the end of the year stating the total income earned while injured." does not indicate that the sick pay is tax exempt.  It is providing you with a breakdown of regular wages vs sick pay wages.

Typically, paid sick leave is taxable as regular income and is subject to withholding. In most cases, if you receive sick pay from your employer on an "as you get sick" basis, your sick pay isn't distinguishable from your regular wages and is subject to withholding at your normal rate. 

[lfdmike]

Allow me to clarify, the City pays salary to injured firefighters on long term injury leave. In our collective bargaining agreement  this salary is in place of workers compensation and is treated as short term disability. 

[VictorW9]

Usually, your W2 should show whether you have a portion of pay that is non-taxable. Check your W2  box 12 to see if there is an amount with a code J or something. That's the code for non-taxable sick pay.

[lfdmike]

The City of Columbus is lazy and doesn't do that, I just need to know wow to enter negative income number as misc income.

Thanks 

[LeonardS]

There is another factor to consider when determining if your disability payments are tax exempt. If you and your employer share the cost of a disability plan, you are only liable for taxes on the amount received due to payments made by your employer. So, if you pay the entire cost of a sickness or injury plan with after-tax money, you do not need to report any payments you receive under the plan as income.