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New Member
posted Feb 1, 2024 10:18:31 PM

The NYS HWB is not state taxed. In state returns, the section under Wage & Retirement adjust. has no START button for the "Military pay...healthcare bonus" subtraction

The NYS Healthcare Worker Bonus is federally taxed but not state taxed. It should be filed as a subtraction (Form IT-225) along with Form-201 for NYS residents (which I am). When I go to the state returns section, there is a chance to add adjustments. I noticed some options do not have a Start button including the "Military pay, NYC benefits withholding, pension exclusion, Health care worker bonus" under the "Wage and retirement adjustments" category. Because of this, it is taxing my bonus. How am I supposed to enter this information so that it doesn't get taxed by the state?

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1 Replies
Expert Alumni
Feb 4, 2024 12:17:22 PM

In the NY state interview on the page titled "Changes to Federal Income" you should see the  section "Wage and Retirement adjustments."  The first line reads as you state, "Military pay, NYC benefits withholding, pension exclusion, Health care worker bonus" and does not have a "START" box.  However, at the bottom of the section you should see "Health Care and mental hygiene worker bonus" with a "START" box.  There you should be able to enter the HWB subtraction amount that was entered as taxable in the federal interview. 

 

If your page does not show this option, you should sign out of your TurboTax account and clear your browser cache and then sign back in to your account.  Many times this clears up any missing information.  Here is a link that may be helpful, if needed.