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david-yob
New Member

Do i have to claim a long term disability or 3rd party sick pay with my state return

 
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3 Replies
MichaelDC
New Member

Do i have to claim a long term disability or 3rd party sick pay with my state return

No, you do not pay taxes on long-term disability payments.
 

If your third party sick pay W2 has an empty Box 1, no taxes taken out, and has Box 12 Code J (third party sick pay), then it is not necessary for you to submit this W2 with your return.  

This third party sick pay (Code J) is not taxable.  Your employer was required to generate the W2, but it is not necessary for you to file it.  And, if you try to submit a W2 with a $0.00 in Box 1, the IRS will reject your e-file.  You can return to the Wages and Income section and remove this W2 from your return if it is still present, or simply not add it.

If your third party sick pay is taxable (doesn't meet the above criteria), then simply enter it as an additional W2.  If no taxes were taken out, then you may owe additional taxes on the income now, but that will be factored into your return when you add the W2.


Blink916
New Member

Do i have to claim a long term disability or 3rd party sick pay with my state return

If you have the W2’s and has amounts in box 1, I understand I file It as a regular W2’s. 
my question is, at the end in state taxes, it asks for PFL, do I put This amount in here or just the amount from my employers W2? 

DMarkM1
Employee Tax Expert

Do i have to claim a long term disability or 3rd party sick pay with my state return

Did you get a 1099-G as well for Paid Family Leave?  The normal procedure is for anything not taxable by the state you would get a 1099-G for portions of Paid Family Leave that are not taxable by the state but are taxable on your federal return. 

 

Amounts in box 1 of a W2 are normally taxable by both federal and states.  It does depend on the state involved however.  Here is a link that discusses CA.

 

Here is another link with discussion and links to Paid Family Leave topics.

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