@perplexed4
Why are the wages reported in Box 1 Federal Wages different than Box 16 State Wages?
The amount in Box 16 state wages and Box 1 federal wages are usually the same. However, CA wages in Box 16 may differ from Box 1 federal wages for the following reasons:
- Wages earned in another state.
- Medical expenses. CA allows an exclusion from gross income for certain employer-provided benefits for a taxpayer's registered domestic partner and that partner's dependents.
- California does not conform to federal law regarding health savings accounts (HSAs).
- CA taxpayers cannot deduct contributions to federal HSA from their California Wages. It is not excluded as income and is added to the taxpayers CA wages.
- Ridesharing benefits
- Sick pay under FICA
- Clergy Housing Exclusion
- Income is exempt by U.S. treaties (applies to the employees from the country that has treaty with the US).
- California and New York do not conform to the federal suspension of exclusion from income for qualified moving expense reimbursements under the 2017 federal tax law, HR.1, Pub. L. 115-97. CA and New York allow exclusion from income for qualified moving expense reimbursements.
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