Amy C,
My situation is slightly different. I live and work in NYS, however my wife works as a teacher in NJ. Her W2 reflects both a 414h entry and a SEC125 entry along with the corresponding dollar amounts. Her federal wages are lower than her NJ wages, reflecting these amounts as NOT federally taxable, yet NJ taxable. Being we live in NY, my question is which category do I select for each of these box 14 entries, NY taxable or NY tax exempt?
