Are the payroll deductions for WA Cares deductable on Federal Tax Returns?
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Is it not listed on your W2 in Box 14?
Automatically contribute 0.58% of your paycheck to the fund during your working years, starting in July 2023. After contributing for 10 years (or less if you are nearing retirement or have a sudden need), you can access your benefit when you need care.
Yes, it is, but the Turbo Tax has a dropdown menu with several options, one as a "payroll tax" and another as "unlisted". They also have numerous options for various programs run by other states, but WA Cares was not listed. I would think it should be. I went to the WA Cares site and they call it a "contribution", and they have no comments on this in their FAQ. So is it a contribution or a tax? Anti-tax activists call it a tax, but what does the IRS call it?
Yes, you should select "Other" as the code for WA Cares contributions.
The program is for long term care insurance, so it isn't a tax. Follow this link to learn more about the program.
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