Wages, Social Security, and State income are a different number

Forum|Forum|6 years ago
December 7, 2019
11 replies
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ProSeries Professional

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Best answer by Accountant-Man

NJ doesn't tax the 401k deferral, but it does tax 403b deferrals as wages.

NJ taxes the Cafe 125, FSA and HSA contributions as wages. Your client's W2 doesn't report it, but it's there.

PA taxes all compensation as wages, so it doesn't tax IRA and retirement distributions.

Which state are you asking about?

sjrcpa

Level 15

What state? Some states tax things such as 401(k) deferrals and 125 Plan contributions.

The more I know the more I don’t know.

Camp1040

Level 10

Double check your entries on the W-2 worksheet.....look at your line 12a above, could just be a typo.

Accountant-Man

Level 13

You mean box 3 & 5 are $45,457.98. Box 2 is fed tax.

** I am "Elevating with Intention!"

T

tbanksAuthor

Level 3

Sjrcpa - New Jersey

T

tbanksAuthor

Level 3

Camp1040- that was a typo on my end. $1,482.22

sjrcpa

Level 15

As AM said, NJ taxes the 125 Plan contributions.

The more I know the more I don’t know.

Accountant-ManAnswer

Level 13

NJ doesn't tax the 401k deferral, but it does tax 403b deferrals as wages.

NJ taxes the Cafe 125, FSA and HSA contributions as wages. Your client's W2 doesn't report it, but it's there.

PA taxes all compensation as wages, so it doesn't tax IRA and retirement distributions.

Which state are you asking about?

** I am "Elevating with Intention!"

S

Skylane

Intuit Community Champion

What AM said is correct......... frequently, if you have a NJ resident who works in NY the W2 will not tell you the NJ taxable wages but they'll list the Cafe 125, 403b, etc on the W2. You have to know those items are NJ taxable. On the NJ1040 in PS there's a worksheet under line 14 where you can add back the NJ taxable items to the return.

If at first you don’t succeed…..find a workaround

T

The-Tax-Lady

Level 8

Have the client ask their employer that question. It may be an error.