I received short term disability. Employer did not list this in w2 or didn't provide 1099. I do have statement showing tax and gross for it. How to add this in Turbotax

[jaypatel223]

I received short term disability for materiality. My employer did not listed this in W2 or did not provide any other applicable form (e.g. 1099).  I do have statement showing gross payment and tax deductibles. How can I add this info in TurboTax?

[ZhuoliA]

You should contact your employer to find out whether you should have received a W-2 for the short-term disability payment before you add this info in TurboTax. You may receive a second W-2 from an insurer reporting taxable short-term disability. If the employer pays for the disability insurance, it's taxable to you. If you paid for the cost of disability insurance, it will not be taxable. Please see here for more information.

[ARC371]

Hi @ZhuoliA!

Similar question for me...

I received a W2 from my employer AND the insurance company I received short-term disability benefits through. 

The employer W2 has my STD gross payments in boxes 1, 16 and 18 (I live in Michigan and work in Pontiac so this is my Federal, State and Local wage boxes, respectively).  They also show the Social security tax and Medicare tax withheld in boxes 4 and 6.  However, they do NOT show the Federal tax that the insurance company withheld in box 2 (I filled out a W4-S to have federal taxes withheld from my STD checks).  I don't understand why the Federal tax is not showing up but everything else is.  The "Third-party sick pay" box is also checked in box 13.

I ALSO received a W2 from the insurance company showing the correct Wages, Federal income tax, Social security tax and Medicare tax withheld (so boxes 1, 2, 3, 4, 5, 6, 16 and 17 have figures in them).  The "Third-party sick pay" box is also checked in box 13.  This W2 is accurate to me.

When I contacted the insurance company, they said they have a tax agreement with my employer so my employer should not be reporting any of my disability information on the W2 they issue to me because that is all reported on a W2 from them (the insurance company).

Is this correct, and my employer needs to update the W2 I received from them to remove the disability payments and Social security and Medicare taxes; and uncheck the Third-party sick pay box?

My employer pays 100% of the disability insurance benefit.  I was on short-term disability for 2 months in 2022.

Thank you!

Aimee