Hi, is IRC 132 Fringe commuter benefit amount in Box 14 is taxable for New Jersey state?
TT drop down list not showing this at all. employer is New York state govt. tax payer living in other state
Q: Does Turbotax classifies all Box 14 items instead selecting as "Other -not listed-"?
ey_taxnews_2020 stating:
Under New Jersey law (N.J.S.A. 54A:6-23.a), commuter transportation benefits are excluded from income tax and income tax withholding if provided directly by the employer. On the other hand, if the benefits are purchased with pretax contributions, those pretax contributions do not reduce the wages subject to New Jersey income tax and income tax withholding. (New Jersey TB-24(R), December 2010.)
Accordingly, the New Jersey exclusion for commuter transportation benefits differs from the federal exclusion primarily in one way — for the New Jersey tax exclusion, the benefit must be provided in addition to regular compensation and not as part of a compensation reduction plan or agreement.
Some what hard to understand, but its understandable that NJ-state IRC 132 is not straight forward in this aspect. Appreciate if some tax experts shed some light. Link provided above is just a tax payer google search.
Note: Federal, NY state, NYC gives tax deduction as per NYC.gov taxes faq NYC.gov website but likes to know details for other adjacent state (non-resident) filers.
