Settlement Award 2021 W-2 (Nguyen v Nordstrom)

[pinkfreesias2]

Year 2021 California 

I received a W2 for the Nguyen v Nordstrom Inc Settlement. 

The first half of the W2 has line items 1, 2, 3, 4, 5, 6, 15, 16, and 17 under Nguyen v Nordstrom. 

The second half has line items 14 and 15 under Nordstrom. All other sections are blank except for SSN and Employee's name+addy. 

So within one award letter, I have two different employer's names and #15 State Employer's state ID numbers.

How do I fill out my returns? Do I incorporate #14 Other value into the first half of W-2 although #15 state ID numbers are different?

[LoganathanB]

yes enter the information as it appears in the W-2 as IRS and CA state have the same information.

[pinkfreesias2]

So the first half of W2 has #15 State Employer's State ID Number CA 826-6420-2 with #14 other blank, but the second half of W2 has #15 CA 262-2519-3 with #14 SDI $.

So is it still okay to enter the SDI value as a part of the first half of W2?

[AmyC · Accepted solution]

So one normal w2  from Nguyen v Nordstrom and one that only has box 14 other info and box 15 a state ID? No actual income or taxes on the form? If box 15 is:

• the same state on both w2s, ignore the second for state purposes
• If different states, simply add the second w2 state to the first w2.

Box 14 is generally informational and does not go on the return. There are some state specific things there however, The key may be in the state specific portion but struggling to find it with a lawsuit. If that is all, I would not enter the second w2 as there is no tax information for you to report. It would be Nordstrom letting the IRS know they were involved in the process since the other w2 was issued under a different ID.

[pinkfreesias2]

Thank you for your expertise, @AmyC 

The normal W2 has Box 14 blank but with Boxes 1-6 and 15 (California)-17 filled, the secondary W2 has only Box 14 with SDI and Box 15 with a California state ID number that's is different from the normal W2. 

So I understand that I have nothing to report from the W2 that doesn't list taxes/wages. 

[AmyC]

Correct, the second w2 is not needed in your case.

Generally, VPDI and/or SDI benefits are not taxable by the state of California or the IRS. The one case in which they may be taxed is when employees receive SDI benefits in place of unemployment compensation and for a person who is not eligible for Unemployment Insurance (UI) benefits only because of the disability.

Since neither of these apply to you, box 14 is just informational along with box 15 on that extra w2.