Washington State Industrial Insurance shown on W-2 Misc Info: how report on tax return?

[hasstedts]

My W-2 Miscellaneous Information shows Washington State Industrial Insurance paid in the amount of $84.48.  In years past this was shown in box 14 (other). How/where do I report it on my tax return?  (I am using TurboTax Deluxe.)

[DDollar · Accepted solution]

According to the Washington State Department of Revenue: "...industrial insurance premium payments are not considered as one of the general taxes levied by the state, since its receipts are solely dedicated to funding compensation for injured workers."  Since it is not considered a tax, it is not deductible as such.

See the next to last paragraph of: INDUSTRIAL INSURANCE RCW 51.16.060

[DDollar]

This entry on your W-2 does not need to be entered.  According to the IRS W-2 Instructions for Box 14:

"You also may use this box for any other information that you want to give to your employee. Label each item. Examples include state disability insurance taxes withheld, union dues, uniform payments, health insurance premiums deducted, nontaxable income, educational assistance payments, or a minister's parsonage allowance and utilities. In addition, you may enter the following contributions to a pension plan: (a) non-elective employer contributions made on behalf of an employee, (b) voluntary after-tax contributions (but not designated Roth contributions) that are deducted from an employee's pay, (c) required employee contributions, and (d) employer matching contributions."

It's a Catch All box for items that need to be disclosed, but not necessarily entered.  In this case it's for Washington State Industrial Insurance. Employers are required by Washington State law to carry industrial insurance (also known as workers’ compensation) for employees. In return, the employer ordinarily cannot be sued for damages if a work-related injury or illness occurs.

[hasstedts]

I'm still a little confused, since I know where to enter everything else noted, whether it's a charitable organization, union dues, etc. Why would it be listed if it's not useful for tax reporting?

[DDollar]

That I can't explain.  I suggest you ask you employer's payroll folks.

[drerdr]

In Washington, employers are allowed to charge employees a portion of the state industrial taxes (workmens comp).  We should be able to deduct those taxes.  How do we do that on turbo tax?  I know CPAs are able to use that information.

[DDollar]

I have added an answer to address your comments.

[dsand29]

Thanks