When you enter a NY W-2 with this code and amount in Box 14, the program comes to a screen following the W-2 entry that asks if "this amount was deducted or deferred from your salary under a flexible benefits program established by NY City or other NYC public employer on your behalf". You can answer Yes or No.. Your answer here determines whether the amount becomes taxable or not on the NY return.
If you said Yes, the amount was already on your NY return and you duplicated it by entering the amount again in relation to another question in the NY program.
