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dabulughod
New Member

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

Only once in the last 14 years was I not fined. How do I prevent this
1 Best answer

Accepted Solutions
rjs
Level 15
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

The IRC 414(h) and IRC 125 amounts should be shown in box 14 on your W-2. When you enter them in TurboTax, it should automatically recognize the abbreviations and handle them correctly on the state return. To make sure, when you get to the W-2 summary screen ("Here's your W-2 info"), click the edit button for your W-2 to go back and check the box 14 entries. In the Box14 section, to the right of the amounts, there is a third column called "Tax Category." Make sure that the correct descriptions have been selected in that column. If not, select the correct description from the pull-down list. For IRC 414(h) it should say "NY IRC 414(h) Subject to NY tax." For IRC 125 it should say "NY IRC 125/SEC 18 Subject to NY tax."

When you do your state return, you will come to a screen that says "Your New York Income Adjustments." This will show the 414(h) and Section 125 amounts that are being added to your income on the NY return. The Section 125 amount will be labeled "Other Additions."

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31 Replies
SweetieJean
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

Does your W-2 properly include these in the State wages box?
rjs
Level 15
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

@SweetieJean - New York State requires W-2 box 16 to be the same as box 1. The IRC 414(h) and IRC 125 amounts have to be added to income in the New York Additions section of Form IT-201, on lines 21 and 23.
SweetieJean
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

Thanks for that.
SteamTrain
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

...hmmm
....software would only have to add back the IRC 125 amounts to box 1 or 16?

I seem to recall that 414(h) contributions don't reduce box 1 in the first place...or am I thinking of something else?
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
SweetieJean
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

SweetieJean
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

rjs
Level 15
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

@SteamTrain - You must be thinking of something else. Form IT-201 has a specific line just for this: Line 21, "Public employee 414(h) retirement contributions from your wage and tax statements."
SteamTrain
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

I remember now......because it's not voluntary, that 414(h) $$ amount is just not eligible for determining any "Retirement Savings Contribution Credit".
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
bobbybudhu
New Member

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

Need help doing an amendment for the previous years that I did not include my 414h contributions
bobbybudhu
New Member

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

Is this only with Turbo Tax that the 414h contributions do not get transferred from Federal to State?
rjs
Level 15
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

@bobbybudhu - If the 414(h) contribution is entered correctly on the W-2 screen, it does get transferred automatically to the New York state tax return. See my answer below for details of how it should be entered.
dabulughod
New Member

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

I always enter the info from my W2 and it never transfers on Turbotax
onerogueranger
New Member

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

This just happened to me for the first time this year...I am digging into the details now
rjs
Level 15
Level 15

My IRC125 and 414(H) payments are taxable in NYS but do not transfer from Federal to State return. Every year I get additional assessment and $27-$67 interest.

The IRC 414(h) and IRC 125 amounts should be shown in box 14 on your W-2. When you enter them in TurboTax, it should automatically recognize the abbreviations and handle them correctly on the state return. To make sure, when you get to the W-2 summary screen ("Here's your W-2 info"), click the edit button for your W-2 to go back and check the box 14 entries. In the Box14 section, to the right of the amounts, there is a third column called "Tax Category." Make sure that the correct descriptions have been selected in that column. If not, select the correct description from the pull-down list. For IRC 414(h) it should say "NY IRC 414(h) Subject to NY tax." For IRC 125 it should say "NY IRC 125/SEC 18 Subject to NY tax."

When you do your state return, you will come to a screen that says "Your New York Income Adjustments." This will show the 414(h) and Section 125 amounts that are being added to your income on the NY return. The Section 125 amount will be labeled "Other Additions."

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