My wife recieved a w2 for third party sick pay. There are amounts in boxes 1,3,4,5,6 and for the state section bx 16. Box 2 is BLANK. Does this have to be filed?

[dab926]

No codes are in box 12

[Hal_Al · Accepted solution]

Yes. She has taxable income.

Third party sick pay may or may not be taxable. If you got a W-2, with an amount in box 1, it is taxable. The rule is if you paid the premium, with after tax money, the sick pay benefit is tax free. If your employer paid the premium (as in most cases) or you paid the premium with pre-tax money, the benefit is taxable.