Sick Leave Wages

[Laurie6]

Where are sick leave wages entered on the Form 1040?

[qbteachmt]

Are you asking about W-2 wages? Or Schedule SE? Or, as the employer?

[Laurie6]

Client received a letter about sick wages received under FMLA that indicates a reporting requirement on F1040.  No separately designated wages reported on her W2. 

[qbteachmt · Accepted solution]

I think this is what you are asking about:

They should already be part of the W2 boxes.

https://www.lockton.com/insights/post/irs-addresses-w-2-reporting-for-ffcra-sick-and-fmla-leave

And:

https://www.journalofaccountancy.com/news/2020/jul/report-coronavirus-paid-sick-family-leave-employe...

"Employers will be required to report payments to employees either on box 14 of Form W-2, Wage and Tax Statement, or in a separate statement. The guidance provides employers with language to use on the Form W-2 or in the statement to employees.

Employers must separately state the total amount of qualified sick leave wages paid because the employee was quarantined or diagnosed with COVID-19, the total amount of qualified sick leave wages paid because the employee was caring for a sick individual or for a child (or for other similar reason), and the total amount of qualified family leave wages paid.

This reporting provides employees who are also self-employed with information necessary for properly claiming qualified sick leave equivalent or qualified family leave equivalent credits under the Families First Act."

https://www.irs.gov/pub/irs-drop/n-20-54.pdf

[Laurie6]

Spoiler

Thank you very much?

[qbteachmt]

"Thank you very much?"

Did you have another question?

As those articles explain if your client also self-employed, they will need this info for their tax return allocations.

[kkeats01]

Where do we enter this for self-employed?

[qbteachmt]

"Where do we enter this for self-employed?"

This, which part? Did you click those links to read those articles?

[kkeats01]

I needed to find the screen in Lacerte but I got it - 38.4 for anyone following along.

[qbteachmt]

That would be this Help article:

https://proconnect.intuit.com/community/business-tax-credits-and-deductions/help/how-to-generate-for...

And note that this topic, with W2 info already reported, is the info used to Reduce the Form 7202 qualification, since a self-employed person who also got some sick leave through the employer, doesn't get the full amount for their self-employed entry.