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Level 2
posted Feb 20, 2022 12:52:15 PM

W2 third party sick pay box 12 J

Hello, I have a w2 box 1 =19161 box 2 is 0 box 3 is 5708 box 4=354 box 5 = 5708,  box 12- code J 7983 3rd party sick pay is checked.  Coded J is nontaxable sick pay.  However the amount due does not change when I input this number like it does when I input other numbers.  If this amount is not taxable then I will assume the 11178 is taxable.  However turbotax is still taxing the entire 19161 in the tax due box and does not adjust for the nontaxable amount.  

 

Can someone please explain this to me?

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1 Replies
Expert Alumni
Feb 21, 2022 9:29:42 AM

Yes, I can explain this.

 

The amount in box 12 with code J is not taxable income, but that doesn't mean that you subtract it from the amount in box 1 to get your taxable amount.

 

The instruction for code J is this:

"Code J—Nontaxable sick pay. Show any sick pay that was paid by a third party and was not includible in income (and not shown in boxes 1, 3, and 5) because the employee contributed to the sick pay plan." IRS instructions for W2

 

So this form is reporting that you received $19,161 in taxable wages and $7,983 in non-taxable third party sick pay. If you think that is not correct, you should contact your employer to get it corrected.