Do I need to report both w-2 on my 1040 if they reflect the same disability amounts from my employer and ins.?

Question

My friend is on long-term disability. She gets $1500 a month from the company's insurance co. She received a w-2 from the employer stating $16,000 in third-party sick pay and a w-2 from the insurance co. showing $18,000 for the same. If I report both it would show $30,000+ in taxfree income while she actually received only what the Insurance w-2 reflected. Did the employer err in sending a w-2? Can I disregard it and file with just the Insurance w-2? And if I file with both would it affect her bottom line. She also has a dependent child living with her.

Answer 1

If the total she received was the $18k from the insurance company, the company erred by sending her the W2. Contact the employer and resolve this issue. If the income is truly tax-free it shouldn't matter but any return filed needs to match the IRS records.

Whether or not it's tax-free is another matter entirely. See IRS Pub 525 for guidance on that.

Answer 2

She receives the payments directly from the insurance company. Only the insurance company should have issued a W-2. She needs to contact the employer to have the second W-2 rescinded.

After she takes care of that, then file as you have described.

Answer 3

Since it's the same income, she should contact the employer and tell them what happened, and request a corrected W-2. Both of these will have been reported to the IRS, and the IRS will think they are for two separate payment amounts and expect them to be added together.

Answer 4

they could have a last date by using fact employers do not care approximately workers. The employers could mail them out each and every time they felt like it in any different case and somewhat some workers could the two get a return later than persons, or worse, be previous due in paying their taxes.