Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 16, 2025 4:52:45 AM

Figuring out how to calculate cafeteria plan add-backs and medical premiums for NJ.

I reside in NJ and work in NY and received W-2 from 2 different employers.   All income will be allocated to NY.  "Employer 1" had both NY and NJ lines on their W-2, while "Employer 2" only had a NY line (since they do not have a NJ presence). 
 
On TurboTax, when I get to my resident NJ tax return, it prompts me to make wage adjustments to add-back the NJ-specific items, such as (i) elective amounts contributed to a pension plan other than 401(k), (ii) cafeteria plan contributions, (iii) Section 137 adoption expense benefits, and (iv) Section 129 dependent care benefits. 
 
1. Since Employer 1's W-2 already included a NY and NJ line, which listed the NJ taxable income as higher than the NY taxable, is it fair to assume that this has been done already for Employer 1?  And therefore, I would only need to make these adjustments with respect to Employer 2? 
 
2. Assuming that's right, would there be any indicators (Box 12? 14?) on Employer 2's W-2 that would show  me how much I need to add back, or do I need to look at something else?   For reference, in Box 12 the codes are C and DD, and in Box 14 the only entry is NY PFL.
 
3. Finally, I know there is a deduction for "insurance premiums included in your New Jersey wages but not in your federal wages on your W-2, and not deducted on Federal Schedule A."  I will be taking the standard deduction on my federal return.  Similarly, would there be any indicators (Box 12? 14?) on Employer 1 AND Employer 2's W-2 that would show me how much I can claim here, or do I need to look at something else? 
 

0 1 4006
1 Replies
Expert Alumni
Feb 16, 2025 11:26:07 AM

1. Yes your New Jersey W2 wages for Box 16 will have the correct adjustments so you will only have to determine if any amounts need to be added for the other W2.  

2. You would not need to make any adjustments for the Code C (Life insurance taxable) or DD (Employer provided health insurance or Box 14 NYPFL.

3. If you had after tax health insurance deductions, they would be in Box 14 (but this is not a mandatory reporting) so you would have to ask you employer- this would be extremely rare.