I have two amounts listed in Box17 NJ Income Tax. The first is NJ Income Tax Withheld, the second amount is for "FLI" which is Family Leave Insurance. Other secondary taxes are listed in Box14 (i.e. Disability and Unemployment).
Should I assume that the FLI amount should have been listed in Box14 instead of Box17? Or should I add the FLI amount to the NJ Income Tax withheld?
There is income earned in only one state.
Yes, the FLI should be in Box 14. You should enter it for Box 14 so the state taxes will be correct.
I am in the same situation, do we on turbos end delete line 17 under the w2 when now entering the information on 14? Do I still leave line 15 showing NJ and Nj employers id or take that information out all together under the W2?
Not according to the state of NJ, they intend for it to be reported on line 17.
https://www.state.nj.us/treasury/taxation/pdf/other_forms/git-er/m6025-2019.pdf
To clarify,
Do you have an amount reported in Box 14 with the code FLI
Do you work or live in New Jersey?
I have FLI listed in Box 15 in my NJ W2 form. FLI is not listed in Box 14.
Turbo tax won't let me file my tax returns.
What should I do?
Thanks.
Sounds like you have a non-standard W-2 Form. Box 15 should have the two-letter State Code (NJ), followed by the Employer State ID, Box 16 should have the amount of NJ Wages, and Box 17 the amount of NJ tax paid.
If you can edit your W-2 entry to conform to the standard, you will be able to Efile.
Click this link for more info on Entering NJ FLI.
@xdreduardx
Family Leave Insurance premiums are post NJ tax and therefore included in NJ box 16 wages. Thus when benefits are taken they are not taxed by NJ. To handle correctly in TurboTax the NJ FLI should be a box 14 entry and select "NJ FLI" from the box 14 category dropdown.
NJ state line boxes 15-17 should only have NJ, the state ID number, the state wages, the state income tax withheld.
Did you ever get an answer to this, because the same thing just happened to us, and our NJ refund was reduced by the exact amount of the NJFLI?
Pls let us know how to fix this problem, thanks.
You are correct the NJ box 16 wages are increased by the amount of Family Leave Insurance premiums. FLI premiums are post-NJ tax and therefore included in NJ box 16 wages. Thus when/if family leave benefits are taken they are not taxed by NJ.
To handle correctly in TurboTax the NJ FLI should be a box 14 entry and select "NJ FLI" from the box 14 category dropdown.
NJ state line boxes 15-17 should only have NJ, the state ID number, the state wages, the state income tax withheld.
Also, pls note that I tried to remove the new listing from Box 14, but the NJ refund did not re-calculate.
Do you know how to refresh the NJ refund back to what it was before I deleted the FLI from Box 15?
Try deleting the entire W2 from the federal "Income" topic and re-entering the W2 information entirely from scratch. Be sure after deleting the W2 continue through the W2 topic to get all the way back to the summary page before re-entering the information again.
Thanks, I will try that later and let you know what happens.
I just had the chance to try it, but after deleting my W-2 and re-entering everything from scratch with the NJ FLI in Box 14, my NJ Refund is still coming out the same --- reduced exactly by the amount of the FLI.
As I understand it, Family leave insurance is a mandatory contribution withheld from my wages by my employer, so how would that reduce my refund?
Please clarify if this is what's supposed to happen, or if this is a glitch in Turbo Tax.
Thank you!
UPDATE: I deleted my W-2 again, and re-imported it, and this re-calculated my NJ refund back to where it was before I moved my FLI based on the Smart Check results.
Can I simply bypass the Smart Check errors, leave the FLI in Box 15-17 and proceed to file my taxes anyway?
Please let me know, thanks.
If you had two or more employers, you could have overpaid the maximum FLI and be due a refund of the excess. If not, the entry is not important and you can mark it as other not on the list and move on.
@Miriam67Tx
When you add it to box 14, it is no longer credited in NY. Does this mean that UI/SDI and FLI taxes in NJ are not credited by NYS resident credit? I though all taxes (that is what these are) are credited if paid in another state.
Not family leave taxes. Those are a benefit to you.
Hi,
I think in something with taxes it self in NJ. I had to hire an accounted. I tired witg ith turbo tax or h and r block. It wouldn't work I don't why nobody is aware of this issues.
Agreed. Use box 17. I called the state after I received corrections from the state along with penalties for filing in box 14
NJ Division of Taxation specifically says not to include the FLI tax as NJ Income Taxes (Box 17.) If you report it as Box 17 withholdings in Turbotax, this is what will happen.
https://www.state.nj.us/treasury/taxation/notice-common.shtml
So the options are report it as Box 14 or don't report it at all. I am not sure what impact the Box 14 data has on your taxes, unless you are claiming these taxes as SALT deductions on your federal taxes. I have always inputted in as Box 14 and never had any issues.