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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?

helencpa
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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IRonMaN
Level 15

Box 1 is considered earned income so go for it.


Slava Ukraini!

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1 Comment 1
IRonMaN
Level 15

Box 1 is considered earned income so go for it.


Slava Ukraini!
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