Is third-party sick pay taxable?
by TurboTax• Updated 7 months ago
It depends on whether you paid for the cost of the policy or your employer paid for the policy.
If you paid for the policy:
Your third-party sick pay isn't taxable. You might still receive a W-2, but you don't 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, don't 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'll receive a W-2 with taxable wages in box 1 and include this W-2 in your return.
More like this
- Is sick pay the same thing as paid family leave?by TurboTax•223•Updated December 14, 2023
- Is medical leave or short-term/long-term disability considered paid family leave?by TurboTax•2046•Updated November 22, 2023
- Can employees deduct any job-related expenses?by TurboTax•5123•Updated 7 days ago
- Is disability income taxable?by TurboTax•5900•Updated December 10, 2023
- Can I deduct health insurance premiums taken from my paycheck?by TurboTax•9919•Updated December 10, 2023
![Dynamic Ads](https://digitalasset.intuit.com/render/content/dam/intuit/cgcs/en_us/turbotax/images/TY23_Default_MAX_Refund_Dynamic_Ad_318x300.jpg)
![Dynamic Ads](https://digitalasset.intuit.com/render/content/dam/intuit/cgcs/en_us/turbotax/images/TY23_Default_MAX_Refund_Dynamic_Ad_300x50.jpg)