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ramikamal
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Is 401k tax deductible for NJ taxes but not 414(h)?

I just noticed that the 401K contributions (for myself) decreases NJ income (Box 16), however 414(h) (for my wife) doesn't decrease (not tax deductible) for NJ. Am i getting this correct?

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4 Replies

Is 401k tax deductible for NJ taxes but not 414(h)?

Yes, you have it correct.  

"New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) Plans."

http://www.state.nj.us/treasury/taxation/njit5.shtml

Is 401k tax deductible for NJ taxes but not 414(h)?

So how do you exclude a 401K contribution from income on NJ 1040. Do you override and REDUCE the "AMOUNT" on in Box 16 on the W-2 by the contribution amount in Box 12DD? when entering in the data?

Is 401k tax deductible for NJ taxes but not 414(h)?

Look at the W-2.  Is the number in Box 16 correct? 

Is 401k tax deductible for NJ taxes but not 414(h)?

Number is not correct

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