My husband received 26 weeks of short term disability pay from his employer through their regular payroll in 2022. This pay was subject to all normal withholding and FICA taxes as well as payroll deductions for medical insurance, flex spending, and 401K. The short term disability payments are included on his employer W2 with wages from working, vacation pay (nothing is broken out, the W2 looks as if he worked as normal during this time). After the 26 weeks of employer pay, he started receiving third party sick pay through the long term disability insurance provider as part of his union's contract. It is my understanding that the long term disability payments are subject to federal and state withholding but not FICA taxes. We will have to pay back the long term disability payments once his social security disability application is approved. My question is whether the 26 weeks of short term disability paid with his wages by his employer need to be broken out and reported separately on our taxes or if simply reporting what is on the W2 is correct. This is a new situation for us and I want to be sure that I am not missing anything.
