work injury

[sahdji]

I was off work last year with a work related injury that is categorized as disabled per my employer  and received pay continuance in the form of Injury Leave through my employer.  I did not receive any worker's comp. so all my pay was taxed while I was off.  Is this tax deductible and if so how do I claim it?

[IsabellaG]

This pay continuance would only be nontaxable if these payments were from an insurance plan that you paid for. Otherwise, if this money came from the employer, it would be taxable to you.

If you paid for the policy: Your third-party sick pay is not taxable.

• You might still receive a W-2, but you do not need to report the W-2 as long as all of the following apply:
  • Box 1 – Wages is $0 or blank.
  • Box 12 has Code J.
  • Box 13 – Nontaxable sick pay is checked.

If you receive a W-2 like the above, do not include it in your return. If you try to e-file and include this W-2, the IRS will reject your return.

• If your employer paid for the policy: Your third-party sick pay is taxable.
  • You will receive a W-2 with taxable wages in Box 1, and you will include this W-2 in your return.

[sahdji]

This is taxable even though it is payment for temporary disability through a BWC approved claim? Since my employer is self insured they have opted to give full wages called "injury leave" in lieu of BWC paying me the 60 2/3?