Since third-party sick pay is not supposed to be reported at all on the NJ return but ProConnect Tax, by default, flows the amount to NJ-1040, here's what you can do:Go to the input screen for the W2 in question;Scroll down to the State and Local section;Enter -1 in the numeric field (for $0, Lacerte/PTO-speak); andSelect NJ for state sourcingThis will keep the third-party sick pay on the federal return but won't flow it to NJ-1040, Line 15.If yours is a NJ-1040NR, a couple more entries will be needed to make sure adjustments are made to both Columns A and B. Please come back if that's what you need.

Level 2

Solved

W-2 shows 3rd party sick pay. W-2 had FEDERAL wages and ZERO NJ wages, yet software INCLUDED 3rdPSP on NJ return. Can't find a way to override.

Forum|Forum|3 years ago
March 16, 2023
2 replies
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ProConnect Tax

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Best answer by itonewbie

Since third-party sick pay is not supposed to be reported at all on the NJ return but ProConnect Tax, by default, flows the amount to NJ-1040, here's what you can do:

Go to the input screen for the W2 in question;
Scroll down to the State and Local section;
Enter -1 in the numeric field (for $0, Lacerte/PTO-speak); and
Select NJ for state sourcing

This will keep the third-party sick pay on the federal return but won't flow it to NJ-1040, Line 15.

If yours is a NJ-1040NR, a couple more entries will be needed to make sure adjustments are made to both Columns A and B. Please come back if that's what you need.

George4Tacks

Level 15

If you are certain it is NOT taxable to NJ, then scroll down to (16) State wages, if different and enter a negative one (-1) to indicate zero.

Answers are easy. Questions are hard!

itonewbieAnswer

Level 15

Since third-party sick pay is not supposed to be reported at all on the NJ return but ProConnect Tax, by default, flows the amount to NJ-1040, here's what you can do:

Go to the input screen for the W2 in question;
Scroll down to the State and Local section;
Enter -1 in the numeric field (for $0, Lacerte/PTO-speak); and
Select NJ for state sourcing

This will keep the third-party sick pay on the federal return but won't flow it to NJ-1040, Line 15.

If yours is a NJ-1040NR, a couple more entries will be needed to make sure adjustments are made to both Columns A and B. Please come back if that's what you need.

---------------------------------------------------------------------------------Still an AllStar

George4Tacks

Level 15

JINX! (or as I remember it COKES!)

I guess I had a shorter answer, but you are definitely more thorough.

Answers are easy. Questions are hard!

itonewbie

Level 15

Come on, George. Share a bit of your trade secret. I promise not to tell anyone. 🤞

---------------------------------------------------------------------------------Still an AllStar

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