I have a client who has "CAF 125" shown in Box 14 on their W2... Does anyone know what that stands for? I think it is cafeteria benefits. I understand it is not taxable at the federal level but is it taxable at the state level. The state is NY and the individual is a non-NYC resident and resides and works in Long Island.
Thanks!
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The CAF 125 does not change the way the return is prepared and/or filed. It's a deferment (pre-tax) of the employee's wage and should already be subtracted from the total amount reported in Box 1 of the W-2.
It is noting that your Box 1 wages were decreased for the pre-tax portion of your wages used to pay for Sec 125 cafeteria type benefits. States may treat it differently.
Does anyone know if it is taxable on the NYS return?
I don't do NYS returns, but I would be really surprised if they made you add it back.
NYS wages are already calculated on the W2. Are NYS wages = federal wages?
That's your answer: not taxable for federal, not taxable for NYS.
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caf 125
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