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.
You'll need to sign in or create an account to connect with an expert.
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?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
eduard4us
New Member
maryrose-bosko-y
New Member
Jennifer402
New Member
chubby_2003
Level 1
kay4G
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.