Can I deduct the amount in box 12 code E from my state taxes?

[Net550]

The amount has already been deducted from my Fed wages so shouldn't I be able to deduct it from my state wages?

[AnnetteB · Accepted solution]

State tax returns generally use the Federal Adjusted Gross Income (AGI) as their starting point instead of the information reported in the state section of your W-2. 

Since the amount in box 12 with code E has already been deducted from the Federal W-2 income, you do not need to make a state adjustment because the Federal number is being used.