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QUESTION DETAIL
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Votes
I have a client who received a W-2 with third party sick pay of 28,000 in box 1, box 14a and box 14b. All other boxes are zeros. He says he had his wages reduced by the payments to the 3rd party in all prior years. W-2s from prior years show box 1, box 3, and box 5 with the same amounts. When I enter the W-2 as is into the tax software it shows the 28,000 amount as taxable. He has contacted the 3rd party and they will not re-issue the 2013 W-2. Is the $28,000 taxable or non-taxable ?
ANSWER
The BIDaWIZ Team's Answer:
Do you know if Box 12 included code J? If yes, then this would not be considered taxable income and reported on the client's Form 1040. Typically, if it's in Box 1, it should be taxable though.
