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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.

dabulughod — Sat, 01 Jun 2019 00:44:58 GMT

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

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

SweetieJean — Sat, 01 Jun 2019 00:44:59 GMT

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

@SweetieJean - New York State requires W-2 box 16 to be t...

rjs — Sat, 01 Jun 2019 00:45:00 GMT

@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.

Thanks for that.

SweetieJean — Sat, 01 Jun 2019 00:45:02 GMT

Thanks for that.

...hmmm ....software would only have to add back the IRC...

SteamTrain — Sat, 01 Jun 2019 00:45:04 GMT

...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?

https://tax.custhelp.com/app/answers/detail/a_id/603/~/are-public-employee-414-(h)-contributions-taxable-by-new-york-state%3F">https://tax.custhelp.com/app/answers/detail/a_id/603/~/are-public-employee-414-(h)-contributions-taxable-by-new-york-state%3F</a>

https://www.irs.gov/government-entities/federal-state-local-governments/employer-pick-up-contributions-to-benefit-plans">https://www.irs.gov/government-entities/federal-state-local-governments/employer-pick-up-contributions-to-benefit-plans</a>

@SteamTrain - You must be thinking of something else. For...

rjs — Sat, 01 Jun 2019 00:45:10 GMT

@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."

I remember now......because it's not voluntary, that 414(...

SteamTrain — Sat, 01 Jun 2019 00:45:11 GMT

I remember now......because it's not voluntary, that 414(h) $$ amount is just not eligible for determining any "Retirement Savings Contribution Credit".

Need help doing an amendment for the previous years that...

bobbybudhu — Sat, 01 Jun 2019 00:45:13 GMT

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

Is this only with Turbo Tax that the 414h contributions d...

bobbybudhu — Sat, 01 Jun 2019 00:45:15 GMT

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

@bobbybudhu - If the 414(h) contribution is entered corre...

rjs — Sat, 01 Jun 2019 00:45:16 GMT

@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.

I always enter the info from my W2 and it never transfers...

dabulughod — Sat, 01 Jun 2019 00:45:17 GMT

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

This just happened to me for the first time this year...I...

onerogueranger — Sat, 01 Jun 2019 00:45:19 GMT

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

The IRC 414(h) and IRC 125 amounts should be shown in box...

rjs — Sat, 01 Jun 2019 00:45:19 GMT

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."

This information from the NY Dept of Taxation and Finance...

DonnaO — Tue, 01 Oct 2019 14:25:49 GMT

This information from the NY Dept of Taxation and Finance website might also be helpful:

Public employee retirement contributions, usually shown on a paper Form W-2 in box 14 as “414(h)”, "Pub Ret", "NYS Ret Cont", etc. (e.g., “414 (h) 750.00”) may be subject to NYS tax even though they are not subject to federal tax. ALL NYS public employee retirement contributions, EXCEPT Long Island Railroad and Staten Island Railroad, are subject to NYS tax. Public employee retirement contributions from other states are not subject to NYS tax. 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.

Based on the NY Dept of Taxation and Finance rules for electronic filing, if your 414h contributions are not taxable then you will have to print and mail your return.

Re: The IRC 414(h) and IRC 125 amounts should be shown in box...

ED42 — Sat, 28 Sep 2019 01:53:16 GMT

This is also has happened to us. We just got a letter for 2 years of tax returns saying we owe back taxes, plus interest, because our state return did not include it in our as part of our income. We also likely need to submit an amended return for 2018. Not sure of the root cause w/the transfer from federal to state not working, but definitely not happy.

Re: The IRC 414(h) and IRC 125 amounts should be shown in box...

AMKW — Tue, 01 Oct 2019 13:01:18 GMT

I've just encountered this too. It's infuriating - how is TurboTax not held accountable for this? We're relying on their software and there's a clear error here that we're unlikely to pick up on when going through their system. What's the deal with the interest on the penalty, does anyone know? It seems unfair to be charged interest on a penalty for a 2017 return that I've only just found out about...

Re: The IRC 414(h) and IRC 125 amounts should be shown in box...

Jimmyb820 — Thu, 03 Oct 2019 20:01:07 GMT

You're right because every year this happens to me and i put the correct information. I called the IRS and was told I have to pay taxes on it and need to figure out how much i need to pay the taxes on the 414(H) and IRC 125. I think I'm not going to use Turbo Tax anymore.

Re: 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.

gyaponte — Sat, 30 Jan 2021 20:41:07 GMT

Ugh. This happened to me. Very annoyed.

Annoyed that I'm going to have to start fresh with a different program because TurboTax can't figure out how to fix this.