Do I have to file W2 if all boxes are zero except box 12? Leave payment question

You don't technically need to include a W2 with zero taxable wages when filing your taxes. The Code J in Box 12 indicates non-taxable sick pay, which doesn't need to be reported as income on your tax return. The reason H&R Block won't let you e-file with it is because the IRS e-file system flags returns with W2s showing zero wages as potential errors. It's an automated safeguard to prevent people from accidentally submitting incomplete information. You have two options: 1) Mail in your return with the W2 attached (which is perfectly fine, just slower for processing), or 2) Simply don't include this particular W2 since it doesn't affect your tax calculation at all. The IRS won't miss it because there's no taxable income to report.

After struggling with a similar issue (non-taxable disability payments), I found taxr.ai (https://taxr.ai) incredibly helpful for figuring out what to do with weird tax documents. I uploaded my confusing W2 with zeros everywhere, and it immediately identified it as non-taxable leave payments that don't need to be reported. The tool explained exactly why H&R Block was giving me trouble and confirmed I could either mail it in or leave it off entirely without any issues. It even showed me the specific IRS regulations about Code J payments in Box 12 so I felt confident in my decision.

Just wanted to follow up about taxr.ai - I ended up trying it with my student loan forgiveness question and it was super helpful! It confirmed my forgiveness was non-taxable federally but showed me the 5 states that might still tax it (luckily mine wasn't one of them). The explanation was really clear about why my particular type of forgiveness wasn't taxable, and it even gave me language to use if I get questions from the IRS. Nice to have something explain tax stuff in plain English instead of government-speak. Definitely recommend for anyone with unusual tax situations!

If you're still having trouble with the IRS after filing or want confirmation about leaving off that W2, you might want to try Claimyr (https://claimyr.com). I was in a similar situation with non-taxable disability pay and couldn't get a straight answer about what to do. I kept trying to call the IRS directly but was on hold for hours until I gave up. Then I found Claimyr which got me connected to an actual IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed that I didn't need to report my non-taxable disability pay and that my tax software was just being overly cautious.

I need to publicly eat my hat. I tried Claimyr after being super skeptical, and IT ACTUALLY WORKED. I've been trying for weeks to get someone at the IRS to talk to me about my refund issues, and this service got me through in about 20 minutes. The IRS agent I spoke with was able to see exactly what was happening with my return and gave me clear next steps. Apparently there was a simple error code that needed to be cleared, and they fixed it while I was on the phone. The agent even seemed surprised I got through so quickly! If you're having ANY issues with understanding what to do with tax forms or need to actually speak to the IRS, this is 100% worth it. I'm still shocked it worked so well.

My tax guy said that any W2 with Code J in Box 12 is just informational. If it's disability or sick pay that's not taxable, you can leave it off your return. But you should keep the W2 with your records just in case you're ever asked about it. I had this exact situation last year when I was out on short-term disability for 3 months. Nothing showed up in wages, just the Code J amount. I left it off my return entirely and e-filed without any problems. Never heard a peep from the IRS about it.

H&R Block user here. There's actually a workaround for this! When entering the W2, you have to check the box that says "This is a corrected W2" even though it's not. Then enter all your zeros and the Box 12 amount. For some reason, this bypasses the validation check that prevents e-filing with zero wages. I know it sounds sketchy but my sister works at H&R Block and said they do this all the time for disability and leave payment W2s. The IRS doesn't care because they're only checking for taxable wages anyway, which are zero in your case.

I went through this exact same situation last year with my maternity leave payments! I was so confused when I got a W2 with zeros everywhere except Box 12 Code J showing about $3,800 in non-taxable disability pay. After doing some research and calling my HR department, I learned that you absolutely do NOT need to include this W2 on your tax return. The Code J specifically indicates non-taxable sick pay/disability benefits that don't count as income. Your employer is required to send you this W2 for record-keeping purposes, but it has zero impact on your actual tax calculation. I ended up just leaving it off my return completely and e-filed through TurboTax without any issues. Got my refund in about 2 weeks and never heard anything from the IRS about it. Save yourself the headache of mailing in your return - just file normally without including this particular W2. Keep the physical copy with your tax records though, just in case you ever need it for documentation purposes. The H&R Block software is just being overly cautious because it sees a W2 with zero wages, but it doesn't understand that Code J payments are intentionally non-taxable. Don't let the software force you into mailing when you don't need to!