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California Labor Code 4850

December 23, 2016 • Gaylord Schaap • Log In to Post Comments
Has anyone done a return for a fireman or police officer with injuries while on duty where a portion of his or her salary is determined to be non-taxable under code 4850? My client used vacation and sick leave for 2015 while off on a work related injury. He received  a w-2 for 2015 in which all earnings were taxable. In 2016 the injury was determined to be Code 4850 and his employer was re-imbursed for the comp related payroll cost. How does my client adjust his income for 2015 to reflect the portion that was determined to have been non-taxable?


I think he needs an amended W-2 and file an amended return.


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