STPickup... retirement fund. I know it's taxable for state tax not federal. my question is when I am entering the dollar amount in Turbo Tax for the STPickup, I entered it on the line next to STPickup then there is a drop down box with multiple choices. Not sure if I have to pick one of those choices or just enter the amount on the line. First choice is Maryland STPickup. There's no instructions that I find regarding the drop down box w/choices.
Ok, thank you for clarifying. I just didn't think of that, and STPKP led to no helpful search results.
Most information in Box 14 is just that- informational. It goes nowhere and does nothing. This is why employers can write just about anything and few dropdowns fit these descriptions.
A majority of work-related retirement contributions are handled via the Box 1 and Box 16 of the W2, and no manipulation of income (up or down) occurs from the Box 14 notation. Its tax treatment is already "built in" to the numbers.
However, the Maryland "pickup contributions" are an exception, as they are an add-back on the Maryland tax return itself. So, you need to select "Maryland STPickup" to ensure that it is added to your Maryland income.
STATE RETIREMENT PICKUP. Pickup contributions of a State retirement or pension system member. The pickup amount will be stated separately on your W-2 form. The tax on this portion of your wages is deferred for federal but not for state purposes.
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