w-2 from "the Guardian Life Insurance"

[Pacun]

Client has a terminal disease and got a W-2 from The Guardian Life Insurance that reads: Box 1: $26,878 and nothing else no box filled out. On box 13 it reads: Third-party sick pay.

Depending on how this benefit was paid for, it could be fully taxable, partially taxable, or not taxable at all. Any other advice that you can share before I contact this client? How do I report this w-2 in ATX?

 

[RitaB]

Taxable amount goes on Form 1040 line 7. Enter this W-2 like any other W-2.  Of course, if the amount in Box 1 is not all taxable, I'd enter it all on line 7 and then subtract the nontaxable amount on Line 21.  I bet it's all taxable, though.  But, you never know if a form is correct or not.  Unless you did it yourself.  Yanno?

[Pacun]

Thank you.