No w-2 for nj diability payments but do have my employers notice of disability payments with withholding

[ngarone]

According to my employer, their payroll service does not issue a w-2 for state disability income. They gave me the notice of disability benfits charged with all of 

the withholding info. Where can I report this on my return?

[JulieH1]

It depends on why you got the disability.  Since you mention an employer, I assume it is not SSDI (social security).

If it is just from an employer and not from disability insurance you contracted, it is entered in wages.

Here is information fo you to review.

You must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer:

• If both you and your employer have paid the premiums for the plan, only the amount you receive for your disability that's due to your employer's payments is reported as income.
• If you pay the entire cost of a health or accident insurance plan, don't include any amounts you receive for your disability as income on your tax return.
• If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and you didn't include the amount of the premium as taxable income to you, the premiums are considered paid by your employer, and the disability benefits are fully taxable.

Amounts you receive from your employer while you're sick or injured are part of your salary or wages.

• Report the amount you receive on the line "Wages, salaries, ..." on Form 1040, Form 1040A, U.S. Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents.
• You must include in your income sick pay from any of the following:
  • A welfare fund
  • A state sickness or disability fund
  • An association of employers or employees
  • An insurance company, if your employer paid for the plan

You can generally exclude from income payments you receive from qualified long-term care insurance contracts as reimbursement of medical expenses received for personal injury or sickness under an accident and health insurance contract. Also, you can exclude from income certain payments received under a life insurance contract on the life of a terminally or chronically ill individual (accelerated death benefits). Refer to Publication 907, Tax Highlights for Persons with Disabilities.

You may be able to deduct your out-of-pocket expenses for medical care above any reimbursements if you're eligible to itemize your deductions. You'll need to review Publication 502, Medical and Dental Expenses.

[indyt]

I recd a form NJ-2240 stating statement in support of exclusion for amounts recd under accident and health insurance plan injuries or sickness

what I understand is that this may be excludable on NJ tax forms But is it also excludable from IRS form 1040?

[ThomasM125]

The only way the disability benefits would be excludible on your federal form 1040 is if you paid the premiums for the coverage. It seems that this might not be the case here, however, since the benefis are being paid by the government.  @indyt 

[indyt]

so NJ is definitely excludable

Federally taxed?

[JulieS]

Whether your disability is federally taxable depends on the source of the payment and whether you paid the premiums. 

The fact that you were given Form NJ-2240 implies that your disability is taxable on your federal return and not taxable on your New Jersey return. 

If your disability is federally taxable, it should be included on your W2 form. Enter your W2 as it was received.