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    3rd Party sick pay

    Client brother who passed away in 2004, received a W-2.

    Box 1 38,0000
    Box 13 3rd party sick pay is checked and in Box 12A the letter J is there with no amount.

    I was going to call Aetna and investigate some more.

    Do you file a return? I'm seeking some advice.

    Thanks

    #2
    It doesn't hurt....

    to check. I believe 3rd party sick pay is non-taxable. I'm sure someone will chime in here if I'm mistaken.

    Eli

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      #3
      A little rundown on sick-pay

      Taxable
      *Amounts paid by an employer
      *Amounts paid by an insurer attributable to premiums paid by an employer and not included in employee’s income
      *Sick pay prior to retirement age are taxed as wages. The payer must issue Form W-2 even if all benefits are nontaxable. Taxable benefits are reported in box 1. Nontaxable benefits are reported under Code “j” in box 12.

      I think is your case it'a all taxable.

      Comment


        #4
        Ref Tax Book, page 3-17.

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