Tax Year Prior to 2020: W2 that reported non taxable income, Box 12 showed Code J. It says that we don't have to report the W2, but when listed it told us we had to E-file.

Level 7

Jun 4, 2019 3:35:59 PM

You are correct that if your W2 has an empty Box 1 and has Box 12 Code J (third party sick pay), then it is not necessary for you to submit this W2 with your return. Third party sick pay (Code J) is not taxable. Your employer was required to generate the W2, but it is not necessary for you to file it. And, if you try to submit a W2 with a $0.00 in Box 1, the IRS will reject your e-file.

If the W2 is still showing on your return, then you should return to the Wages and Income section and remove this W2 from your return if it is still present. You can use the search to get there -

Log into your account and click Take Me to My Return (you must click this before searching or you won't get the jump to link below)
Click the search icon in the top right corner (looks like a magnifying glass)
Search for “W2” in the search box
Click the “jump to W2” link.
This will bring you to the appropriate place to delete the W2s

Now, I am not quite sure what you mean by "when listed it told us we had to E-file." It should be the opposite - you won't be able to e-file with this W2 listed. So, if the above doesn't help your issue, can you please comment back with further clarification about what you mean with the above statement.

Level 1

Feb 24, 2020 12:19:16 PM

I have a slightly different problem. The issue is third party sick pay, however, the W-2 indicates an amount in boxes 1, 3 and 5. There was no withholding for federal purposes because the premium was paid by the taxpayer. There is no J code in box 14.

Should I omit the form entirely from the return? I am presuming that IRS will receive a copy of the W-2 and that this could raise a question?

Expert Alumni

Feb 25, 2020 8:29:39 AM

If the premium was paid 100% by the taxpayer then the funds should not be taxable and the W-2 needs to be corrected to have Code J in box 14. You should contact the third party to have the send you a W-2C (with a code in box 14).

In the meantime there are two options: (1) You can file the return with the W-2 as is and then file an amended return when the W-2C arrives, or (2) Wait a few more weeks for the W-2C to come in the mail and then file.

The IRS will be looking for that W-2 to be on your return when you file it, so it is best to file as it is and then amend, or wait until the corrected W-2 is received.

Level 1

Mar 15, 2023 11:45:59 AM

My situation is slightly different still. Box 1 is not empty on my W2. In fact, there is an amount listed in boxes 1, 3, 4, 5, and 6. There is also an amount in box 12a with the "J" code. The amount in 12a matches the amount in box 1. Also, in box 13, an "X" is placed in the box next to "Third-party sick pay". So, in my case, do I add the W-2 into the income section of Turbotax or not? Does it go somewhere different? I initially added it before I realized it was marked as non-taxable (J), but Turbotax doesn't seem to recognize this and my federal refund still decreased by a few hundred dollars when I leave it in.

Thanks in advance for your help!

Employee Tax Expert

Mar 15, 2023 12:09:54 PM

The amount should not be entered on your W2 box 1. The income should only be listed in box 12 as J. You should contact your employer to get a corrected W2. Since the amount in box 1 matches 12a code j, since you only have nontaxable sick pay on your W2, you can delete the W2 you entered by clicking the trash can next to your W2 on your income summary page.

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Tax Year Prior to 2020: W2 that reported non taxable income, Box 12 showed Code J. It says that we don't have to report the W2, but when listed it told us we had to E-file.