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NJ Other Wage Adjustments - W-2 (Pension)

I have a question regarding "Employee elective amounts contributed to all types of pension plans other than 401(k) plan". 

I paid about $1840 towards my pension. Does this mean I enter a negative number or a positive number in this field?

 

I googled NJ tax laws and only found taxation against pension withdraws. Not about contributions.

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1 Reply
AmyC
Expert Alumni

NJ Other Wage Adjustments - W-2 (Pension)

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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