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Returning Member
posted Jan 31, 2024 9:38:16 AM

WA Cares Payroll Deduction

Are the payroll deductions for WA Cares deductable on Federal Tax Returns?

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3 Replies
Expert Alumni
Jan 31, 2024 9:50:01 AM

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.

 

Returning Member
Jan 31, 2024 10:05:27 AM

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?

Expert Alumni
Jan 31, 2024 10:26:10 AM

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.