I have a retirement plan through NYC employee retirement system. What category should I select for IRC414H, IRC 132

[LenaH]

Please check the list below and determine the source of your 414(h) retirement contributions. If you are a member of one of those groups and that is the source of your retirement contributions, then you should select Subject to NY Tax. Otherwise, select Tax Exempt.  

The following 414(h) retirement contributions shown on federal form W-2, Wage and Tax Statement, are taxable by New York State.

• A member of the New York State and Local Retirement systems, which include the New York State Employees' Retirement System and the New York State Police and Fire Retirement System.
• A member of the New York State Teachers' Retirement System.
• An employee of the State or City University of New York who belongs to the Optional Retirement Program.
• A member of the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Board of Education Retirement System, the New York City Police Pension Fund, or the New York City Fire Department Pension Fund.
• A member of the Manhattan and Bronx Surface Transit Operating Authority (MABSTOA).

IRC 132 are fringe benefits. Please choose the category Other (not classified) for this Box 14 item. 

[mostafa-eltalkha]

Thanks!

[TaxLady1975]

Why would someone enter IRC132 as a fringe benefit. The employer does not give us a monetary equivalent. We pay into the commuter benefit system with pretax dollars. Can someone explain this as I do not see how this tabulation is integrated in Turbo. Thank you.

[TaxLady1975]

If IRC132 is not an employer paid fringe benefit, where is this distinction located in Turbo? This is so frustrating for NYC city workers who use turbo, please clarify. Thank you.

[LindaS5247]

There isn't a separate distinction or deduction in TurboTax as your wages are already reduced by the amount contributed to the commuter benefit system.  Therefore, there is no need to separately deduct this amount.

This will flow through to your New York State/City Tax Return when your W-2 is entered into TurboTax, because this adjustment is already reflected on your Form W-2.

Your IRC 132 Commuter Benefits are not subject to taxable wages, state or city taxes.

Click here for information regarding NYC and your Form W-2, under "How are my pre-tax benefit program deductions shown on my W-2?"

Click here for information on how to preview your return prior to e-filing.

[TaxLady1975]

Please put in an ticket request with the intuit turbotax developers to make a notation of this in a sidebar information window. City and Federal Employees paying for this software should not have to google and call customer service for such simplistic aspects of entries. Thank you.

[HopeS]

The amounts listed on your W-2 as IRC 132 is not subject to taxes in New York.  This value represents any Commuter Benefits you may have received.

Box 14 on your W-2 form reporting IRC 132 fringe benefits are typically not included in your gross income as reported in box 1 on your W-2 form or in box 16 for your state wages. So, you don't need to deduct that amount from your New York income because it was not included in your income on your tax return to begin with. 

Please see the section titled "How are my pre-tax benefit program deductions shown in my W-2?" section for more details.

New York FAQ

@TaxLady1975 

[SreenuPrabhaGMAl]

Hi, thank you for sharing thoughts, but main point about IRC 132 is certain states (example: New Jersey) does not consider tax deduction unlike federal, so as a result its painful using this TurboTax software since no drop down list covers entirety. 

100% agree with @TaxLady1975 because Federal, NY-state, NYC may be considering tax deduction from gross but for other adjacent states, this amount need to add back to state-taxable wages, that's the concern. For this reason it TT should clearly show as "IRC 132" as "commuter benefit" not Fringe benefit. Employers might be doing in Box 14 as FRINGE for their convenience but TurboTax developers should cover these intricacies. All Box 14 items should be covered instead marking as  "Other -not listed-" category. For many years its been like this (last 4 years) in TT. Some folks understand and others not. Customers are paying for trusted software I understand other customer concern. 

Q: Can some one share insight if NJ-state gives tax deduction for IRC 132 from gross-wages? 

NJ-Taxation department clarified and not deducting IRC 132 Commuter benefit allocation from gross and explicitly telling to add back to taxable-wage numbers.    

Note: Even for Federal, NY-state, NYC also drop down should clearly show as "Commuter benefits" to avoid ambiguity.

thanks.  

[SreenuPrabhaGMAl]

What about NJ state? for IRC 132 commuter benefits

[TaxLady1975]

Thank you for the response, however, if one pays for tax software, this should be explained in a popup window rather than the consumer having to spend time on google and sourcing Intuit Turbo Tax Customer Service. We are all aiming for quick error-free tax solutions and this can easily be incorporated into the software. Please reach out to the webmaster with this concern/suggestion. Thank you. 

[AmyC]

NJ commuter benefits are pre-tax dollars. They are not part of your federal or state tax.

For more see Commuter Tax Benefits | New Jersey Transit Corporation.

@SreenuPrabhaGMAl