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Can sick pay shown on a W-2 in box 1 be used as earned income to take an IRA contribution?

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Level 1


Can a W-2 for sick pay be used as earned income fir IRA purposes. Im trying to lower income for my client so he wont be subject to paying back his premium tax credit.  He does have a W-2 with sick pay box checked as he is on cancer treatments.  He also has large health bills if that would help. 

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Level 15

Box 1 is considered earned income so go for it.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

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1 Reply 1
Highlighted
Level 15

Box 1 is considered earned income so go for it.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.

View solution in original post

0 Cheers