The amount listed on your W-2 as IRC 132, is not subject to taxes in New York. This amount is for any Commuter Benefits you may have received.
Box 14 on your W-2 form reporting IRC 132 fringe benefits are typically not included in your gross income as reported in box 1 on your W-2 form or in box 16 for your state wages.
Because they are not included in Box 1 as taxable wages, you don't need to deduct that amount from your New York income because it wasn't included in income on your tax return.
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Click here for NYC Commuter Benefits FAQ.
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IRC 132 has not been deducted from box 1 on my NYS tax return and it is not indicated in the drop down menu. Also 132 contributions are not subject to federal income tax, ss tax, medicate etc. How can I ensure the correct deductions are taken?
Line 1 of your NYS tax return should come from the wages and salaries you reported on your federal tax return. This information comes from box 1 of your W-2. Box 1 of your W-2 will already have excluded section 132 benefits from income, so you won't need to subtract it again.
To make sure that these benefits weren't included in box 1 of your W-2, you can review your paystubs or contact your payroll department for verification.
Hi, KeshaH. You have not addressed the issue, which is that IRC 132 is not available in the category droplist for Box 14. IRC 132 includes commuter benefits, which are pretax benefits. Until Intuit addresses this oversight, I guess we can only select IRC 125/SEC 18 NY tax exempt.
IRC132 benefits are not included in the dropdown for box 14 because they are treated the same for federal and NY tax purposes.
As you mentioned, these benefits are pre-tax benefits under both federal and NY tax law. There's no need to make an adjustment on the state return for that amount because it should already not be included in taxable wages in box 1 of the W-2. The state-specific options in the box 14 dropdown are generally related to items that are treated differently between the IRS and state tax laws. You should be able to use the "Other" option from the dropdown for this item.