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Level 2
posted Jun 7, 2020 2:23:33 AM

NJ tax returns - Cafe125 and its classification as income

Hi, in my NJ W2, I have my gross income, less "Cafe 125". From my understanding, this deducts taxable income which seems pretty straightforward. I've inserted the question on the NJ tax returns I am confused on below. However, I'm confused as to whether-this CAFE 125 classifies under 'other wage adjustments'. Is Cafe 125 a cafeteria plan contribution, and would I list this amount as an other wage? I understand it makes less of my income taxable, but does that make it count as other wage adjustments?

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1 Replies
Level 15
Jun 7, 2020 7:52:57 AM

NJ says that cafeteria plan contributions are "typically" includable in your taxable wages, but there are some exceptions.  You can read the details and examples here:  

https://www.state.nj.us/treasury/taxation/pdf/pubs/tb/tb39r.pdf

 

You might have to check with your employer's payroll department to be sure.