NJ and the Fed have different Commuter Transit benefits and different rules. Sadly NJ has much stricter requirements and normally taxes it. Your employer would have to follow NJ rules for it to be deductible in NJ, most out of state do not. I had to amend 4 years of returns after NJ sent me a bill a few years back and I learned that NY made transit benefit easier to claim and didn't meet the NJ rules. Sorry, but believe me if they sent you a bill for a prior year deduction, pay it and also amend and refile following years as they hit me up each year until I amended and the interest adds up fast and they always waited a year to mail me the next years bill.
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