w-2 box 12J earned

[bekzm]

Have a w-2 that no amounts in box 1-11 BUT in box 12 is J so does that include in the earned income for her?
Third party sick pay is marked
Help

[wv112]

This would be income from a short term disability policy that the client paid the premiums by withholding from their regular paychecks. No taxes are due. If you key this, it won't print or be incuded with the return. The code J takes care of this.

[bekzm]

Thanks

Thank you - so no EIC either due to not being taxed

[ecb34691]

Can't e-file without putting $1 in for wages. IRS doesn't allow a $0 for wages.

[BOB W]

If that is the case, I would not put the W-2 into the tax program>>> No tax effect.

[S T]

In my program

I can enter the total amount, and then do a detail sheet and reverse out showing non taxable disability or sick pay. Amount = -0- after netting. Prints a detail sheet and there is a record filed with the return on efile.

I have been entering it this way for 3 years and so far no notices from IRS.

Since the W-2 will be in the computer matching system, my feeling is it still needs to be acknowledged on the tax return. I don't like the CP 2000 notices on the matching program.

Sandy

[joanmcq]

The two years I got these for my personal return, I didn't enter them because of the efile problem and never got a notice. was for 2002 & 2003. I think the zero wages won't cause a CP2000.

[wv112]

It wouldn't cause a CP2000 notice because there is no taxable income in box 1.