IRC125

[laurenkilian]

TurboTax wants a category for the IRC 125 amount on the federal return and the choices are:

NEW York IRC 123/SEC 18 Subject to NY tax

--OR--

New York IRC 123/SEC 18 NY tax exempt.

The instruction on the W-2 says this:

(For CUNY employees only) Dependent Care, Flexible Spending Account and Nontaxable Health Insurance (These are excludable for Federal income tax only and are not included in box 1. This amount must be reported for State and Local Taxes.)

I believe this means we should choose the "Subject to NY tax" option, since it is only excludable for Federal. Does this sound correct? Thanks!

[MaryK4]

Yes, you want to select "Subject to New York tax".  

If any federal Form W-2 wage and tax statement shows that an amount was deducted or deferred from your salary under a flexible benefits program established by CUNY or certain other New York public employers on your or a decedent’s behalf, then enter that amount.