Do i have to enter 'other cafe 125' amount in other wage adjustments in the state return? The amount is being deducted from my gross pay and calculations on box 1 amount

[5kiko238]

Other Cafe 125 has been included in my W2 and is being substracted from my gross pay, and not being included in Box 1 Wages. Do i still need to include it in the 'Other Wages -adjustments' section? if I do, my state return does get smaller

[MaryK4]

It depends on the state (for example NJ and CA)- in general the Cafeteria benefits are excluded from wages for income tax at the federal level.  Some states require you to add back as income.

[5kiko238]

Thank you, I live in NJ, so would you know if i need to add it or not?

[BillM223]

"Other Cafe 125" - where does appear on your W-2? In box 14? Do you have any idea what particular benefit this refers to?

Is this amount included in State Wages in box 16? That would be a clue that your employer at least believes that it is taxable in New Jersey.

Are you positive that this amount has been removed from Wages in box 1 on your W-2? How do you know this? Did your employer tell you?

I just want to pin down what we know so that we assist you.

[5kiko238]

Hello,

Thanks for your answer.

So this amount appears on top right hand side of the W2 - where it states 'Your gross pay was adjusted as follows to produce your W2 statement'. This is what my employer contributes for health and life insurance.

Then I have some columns, one states 'Wages, Tips, other Compensation Box 1 of W-2'

Gross pay amount appears and the Other cafe value is being subtracted, which is what is appearing in

Box 1.

For state wages in Box 16, I have a similar calculation as I've expressed before in a different column 'xxx State, Wages, Tips etc, but the 'other cafe' is marked as N/A in there. and the result is what is being shown on Box 16.

[BillM223]

I have read your last paragraph three times and still don't understand it...it's been a long tax season.

Let's do this:

Your Wages on your employer's books are $200

The cafe 125 amount is $50.

So the box 1 amount on your W-2 is $150.

Is the amount in Box 16 $150 or $200? ($200 would be correct).

[5kiko238]

Hi, 

based on your example, BOX 16 would be $200, as the ‘other cafe 125’ figures as N/A for the state one, therefore is not being substracted like in BOX 1.

Thanks

[BillM223]

And as I recall, the Box 16 number on your W-2 is the number actually used as the starting point for income on the NJ return, right?

If so, then the other cafe 125 has been included in your NJ income so you have nothing more to do. 

Make sense?

[5kiko238]

Hi,

it does, thank you very much. So i won't include this on the NJ Other wages section.

This is really confusing.

Have a good day.

[theplev1]

This is Wisconsin W-2.  Shows how gross pay was adjusted.  Has C-Box 12 and D-Box 12. Then it says Less Other Cafe 125 ($1081.18).  Does not show which box.  Is there a place on tax forms to put this amount or is it already configured in the employer's W-2?  Thank you.

[AbrahamT]

According to the Wisconsin Department of Revenue, see HERE  amounts contributed to a health savings account pretax

by an employee under Sect. 125 IRC (cafeteria plan), are taxable wages for Wisconsin. So if you can see  your Wisconsin wages in Box15 of your W2 which  is your state gross wages adds back the 1,081.18 , then you know that the amount represented as a cafeteria plan "deducted" from your pretax gross wages reported in Box 1 of your W2 is added back for the state of Wisconsin. 

Box C and D have nothing to do with a cafeteria plan. The numbers in these boxes merely represent the following,

C- Taxable costs of group life insurance over 50,000 included in W2 boxes 1,3( upto Social Security wages base and Box 5.

Taxable costs. This is included in your taxable income. 

D-Elective deferral under a Section 401k cash or arrangement plan. This is included in your taxable income as well.This includes a simple 401K arrangement. This is included in your taxable income as well. See HERE

Cafe 125 would typically show up in Box 14. You may wish to doublecheck with your employer as to why it was entered in Box 12 instead.