Where do I enter compensation from short term disbility ?

[tjwoods51]

My husband received pay from his short term disbility through his employee benefits through work. We recieved a w-2 form for the amount but does not have anything tax withheld. Does this need to be entered.. if so, where at?
Thank you

[ehuber52]

Where do I enter this

[LinaJ2018 · Accepted solution]

The way you enter the short term disability benefit depends on whether it is taxable as regular income, and how the insurance premiums are paid.

It is taxable when your husband's employer paid his premiums partially or fully or if your husband paid the coverage with pretax dollars. His employer will report it as part of his wages in box 1. As you enter his Form W-2 as the replica in the TurboTax program, the program will include in your wages on line 1 on your Form 1040 as a taxable transaction.  

It is not taxable if the payments come from a third party like an insurer, and the employee pays for the policy with after-tax dollars -- even if it's purchased through his health plan.  Nontaxable disability payments will be reported in Box 12 of the Form W-2, using Code J.

[Edited 4/13/2020 | 4:10 PM]