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New Member
posted Jun 1, 2019 8:23:13 AM

Are "IRC414H" and "IRC125" "subject to NY tax" or "Tax Exempt" in box 14?

0 2 14343
2 Replies
Level 15
Jun 1, 2019 8:23:15 AM

See:  https://www1.nyc.gov/site/opa/taxes/tax-frequently-asked-questions.page

For Pension Plans:
Contributions are shown in Box 14, IRC414H. Pension contributions are not subject to federal income tax, but are subject to state, city, Social Security, and Medicare taxes. You need to add the pension contribution shown in Box 14 to the reported wage amount.

For Health Insurance Premiums, Dependent Care Assistance Program (DeCAP), and Health Care Flexible Spending Account (HCFSA):
The amounts for these programs, covered under Section 125 of the IRS code, are reflected in Box 14, IRC125. The amount for DeCAP is shown also in Box 10. They are not subject to federal, Social Security, and Medicare taxes. The reduction in earnings shows on your W-2 but not on your pay statement.

The amount in the IRC 125 Box is subject to New York State and City taxes. The NYS income tax instructions direct the income tax filer to report wages as they appear on the W-2 in Box 1 then to add back the amount to arrive at New York State/City taxable wages.



Level 15
Jun 1, 2019 8:23:18 AM

When properly entered on TurboTax's W-2 form, TurboTax should automatically include the IRC 414(h) state pick-up amount shown in box 14 in NY state taxable income.  I would expect TurboTax will do the same for the IRC 125 entry.