Short Term Disability - no W2 - Just an EOB

[FROBERTSON]

I received an EOB that shows my short term disability payments for 2023.  I didn't receive a W2.  The insurance company said that my employer should have put it on the W2 based on their contract.  My employer says I need to talk to TurboTax as to how to file it as they've already sent my W2.  HELP!  

[MarilynG1]

I would recommend you reach out again to your employer.

If they've already sent your W-2 and you don't have it, ask for a duplicate copy.

However, if you did receive a W-2, just enter it as issued.  It may or may not have any notation about short term disability on it, but the amount that you are taxed for may already be included in your Box 1 Wages.

Here's more info on Short Term Disability Taxability.

[FROBERTSON]

adding to that - the insurance company said that through their contract with my employer, they should have had the amounts paid to me on my W2 - but they're not.  They also said that since my employer pays for my short term disability insurance that I would not be taxed on it. However, I know I need to add my income somewhere for State tax if nothing else.

[MonikaK1]

If your disability is taxable, report it on the Federal return. When you complete the state return, answer all of the questions regarding items of income that may be treated differently by your state.

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.
• If the amounts are taxable, you can submit a Form W-4S, Request for Federal Income Tax Withholding From Sick Pay to the insurance company, or make estimated tax payments by filing Form 1040-ES, Estimated Tax for Individuals.

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 "Total amount from Form(s) W-2, box 1" on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors.
• 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

See this IRS FAQ for more information.

[leriggs44]

How do I report the disability payments in my federal return if my employer did not include the amount in my w-2 and the insurance company did not give me a w-2? Is there a place to manually enter it (with an explanation of benefits including how much was taken out for taxes) or do I need a different document? Thanks!

[JamesG1]

In TurboTax Online, the disability income may be reported on line 1h of the IRS form 1040 by following these steps:

• Select Federal from the left side menu.
• Click on Wages & Income.
• Scroll down to Less Common Income.  Click the down arrow to the right.
• Click Start / Revisit to the right of Miscellaneous income….
• Click Start / Revisit to the right of Other income not already reported on a Form W-2 or Form 1099.
• At the screen Types of wages you received, select Sick or disability pay not reported on a W-2 or 1099-R.  Click Continue.
• At the screen Sick or disability pay, enter the dollar amount.

View the entries at Tax Tools / Tools / View Tax Summary / Preview my 1040. 

[leriggs44]

brilliant! thank you!