This is added to your income and taxable. Nj has the most unusual laws regarding retirement. Page 8 Resident Income Tax Return Instructions states: Retirement Plans. Under New Jersey law, contributions to retirement plans (other than 401(k) Plans) are included in State wages on the W-2 in the year the wages are earned. This may cause your State wages (box 16) to be higher than your federal wages (box 1).
You will use a positive entry to create the taxable income rather than the negative sign.
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