NJ Temporary Disability

[TheManleysNJ]

I received temporary disability in NJ  last year.  My employer did not list it on my W-2. I have contacted them and they contacted the state. They were given the amount paid to me along with the taxes removed from my checks, but according to my employer, they do not have the ability to change the W-2 they sent me.  They said they have to get something from the SSA to permit them to do this and I need to figure it out.  I am disabled and am now on SS. I do not have the money to pay someone or the time to sit in an office waiting for help. I have been trying to get this taken care of since January.  I need to get my taxes filed.  Can I just add the numbers I was given to my return on my W-2?  This is ridiculous.  

[IsabellaG]

Your employer should be able to obtain the Temporary Disability Insurance Year-End Statement online from the State of NJ Division of Employer Accounts.  It's your Employer's responsibility to provide you with an accurate W-2, and to correct the W-2 if they didn't include the temporary disability payments.  They certainly do have the ability to correct your W-2.

However, if you know the actual amount, you could file your tax return and report that income, but don't add it to your W-2. Enter your W-2 just the way you received it.

Instead, follow these steps:
 

1. On the screen Let's get the details on your 2024 income, scroll down to the bottom, Miscellaneous Income, 1099-A, 1099-C and click Start.
2. On Let's Work on Any Miscellaneous Income, start Other income not already reported on a Form W-2 or Form 1099.
3.  On Other Wages Received, click Yes, and continue.
4. Continue past Wages Earned as a Household Employee.
5. On Sick or Disability Pay enter the amount that should have been on your W-2.
6. Continue through the section, answering the questions until you are done. 

[TheManleysNJ]

Thank you!  I did all that, but they withheld FIT, FICA, and Medicare taxes from the disability.  Where do I list that? There was no place to enter those numbers. I appreciate your help with this.  They got the information from NJ, but now they say they need something from the SSA in order to make the changes?  I have no idea and I am not sure why his employer is pushing us off with this. 

[IsabellaG · Accepted solution]

I didn't realize that there was federal income tax withheld from your disability pay. At this point, if your employer won't cooperate and send you the corrected W-2, you would need to  follow the instructions from the IRS here, where you can either call  the IRS at 800-829-1040, or make an appointment at an IRS Taxpayer Assistance Center.  

The link to the IRS says that they'll send you instructions to file Form 4852, Substitute for Form W-2, but you can do that in TurboTax. 

Instead of entering your incorrect W-2, you would: 

1. Go through the W-2 section, and as you said in your original question, add those missing items into the appropriate boxes. 
2. Then, as you continue, you'll reach a screen: Let's check for uncommon situations. Check off Nonstandard W-2 (handwritten, modified or altered) and  Didn't get a W-2 (manually calculate my earnings)
3. The next screen, Let's check if you need a substitute W-2, will tell you that you need to make every effort to obtain the W-2 from your employer. You'll check Yes, you still want to complete a substitute W-2. You will acknowledge that you have received an incorrect W-2 and that you've notified the IRS, and that your amounts are the best estimates of your wages for the time period.
4. Proceed to describe the efforts you've made to obtain the correct W-2 and how you came up with your figures. 

These instructions say that you can't efile with Form 4852, you have to print out and mail your tax return. I have seen information that you actually can efile if the Form 4852 has been completed according to the rules. If TurboTax will not allow you to e-file, you'll have to print and mail. 

Another alternative is that if you feel that the employer will cooperate, but not before the April 15 deadline, you could file for an extension until October 15, 2025 to file.  It's not an extension to pay your tax, though, so if you will have a balance due with your return, you'll need to pay it by April 15, 2025. I'm sorry you are having this experience.

 

[TheManleysNJ]

Thank you so very much.  I am going to try to get my employer to comply, but if I do not have the corrected W-2 by the end of this month, I will follow your instructions.  I truly appreciate your help with this.  Trying to get anyone on the phone at the IRS has been next to impossible and the wait times at the nearest TAC are ridiculous.  Thanks again!