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

[sjrcpa]

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

[Camp1040]

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

[Accountant-Man]

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

[tbanks]

Sjrcpa - New Jersey

[tbanks]

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

[sjrcpa]

As AM said, NJ taxes the 125 Plan contributions.

[Accountant-Man · Accepted solution]

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?

[Skylane]

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.

[The-Tax-Lady]

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

[The-Tax-Lady]

The DD code is the total paid for insurance by the employer and employee.

[Accountant-Man]

DD is only employer paid insurance, not employee's.