Deductions & credits

Precisely. See HERE. The heath insurance paid by the employer with pretax dollars is not taxable and is not included on Box 1 of the federal W2. It is taxable for NJ purposes and as such the Box 16 wages for NJ would be a higher amount than the Box 1 for the federal requiring to be deducted on NJ as an itemized deduction subject to 2% over NJ AGI.

 

 

 

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