I have received second year in a row an underpayment letter from NJ. After further investigations it seems that for both years, 2020 and 2021, wages were incorrectly transferred from federal to state. It did not accounted for Cafeteria, FSA contributions, etc that are nondeductible for NJ.
Is this a known issue/bug? It is annoying that I have to pay penalties for 2-3 years underpayment.
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There is no known issue. TurboTax does not transfer wages from the federal tax return to the New Jersey tax return. New Jersey wages come from box 16 of your W-2. You might have entered box 16 incorrectly. If you did not enter anything in box 16, then TurboTax would have used the federal wages from box 1.
Well, the taxable income for NJ in both years matches exactly the adjustments for non deductible items, Cafeteria, FSA and adjusted with GTL.
On ‘Statement for wages, salaries, and tips’ page 1f Taxable Wages is what it should have been used in calculation of Taxable Income. In reality, it seems that box 11 Total wages, salaries, tips etc (that is box 1f + 10) is what is being used in calculate the Taxable Income.
Is there anything else that triggers this adjustment?
Well, the taxable income for NJ in both years matches exactly the adjustments for non deductible items, Cafeteria, FSA and adjusted with GTL.
On ‘Statement for wages, salaries, and tips’ page 1f Taxable Wages is what it should have been used in calculation of Taxable Income. In reality, it seems that box 11 Total wages, salaries, tips etc (that is box 1f + 10) is what is being used in calculate the Taxable Income.
Is there anything else that triggers this adjustment?
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