Is IRC 132 subject to New Jersey state taxes? why TT Premier tax software not listing in dropdown list for Box 14 items

[SreenuPrabhaGMAl]

Hi, is IRC 132 Fringe commuter benefit amount in Box 14 is taxable for New Jersey state?

TT drop down list not showing this at all. employer is New York state govt. tax payer living in other state

Q: Does Turbotax classifies all Box 14 items instead selecting as "Other -not listed-"? 

ey_taxnews_2020  stating:  

Under New Jersey law (N.J.S.A. 54A:6-23.a), commuter transportation benefits are excluded from income tax and income tax withholding if provided directly by the employer. On the other hand, if the benefits are purchased with pretax contributions, those pretax contributions do not reduce the wages subject to New Jersey income tax and income tax withholding. (New Jersey TB-24(R), December 2010.)

Accordingly, the New Jersey exclusion for commuter transportation benefits differs from the federal exclusion primarily in one way — for the New Jersey tax exclusion, the benefit must be provided in addition to regular compensation and not as part of a compensation reduction plan or agreement.

Some what hard to understand, but its understandable that NJ-state IRC 132 is not straight forward in this aspect.  Appreciate if some tax experts shed some light. Link provided above is just a tax payer google search. 

Note: Federal, NY state, NYC gives tax deduction as per NYC.gov taxes faq  NYC.gov website but likes to know details for other adjacent state (non-resident) filers. 

[JosephS1]

Please clarify and expand upon your question.  It is unclear if the IRC 132 Box 14 item you are referring to is included in your Box 1 Wages and other compensation or if it is an item that only shows in Box 14.  Please let us know due to answering your question correctly will depend on whether the answer is yes or no.

[SreenuPrabhaGMAl]

Box 14 and state taxes.

No where mentioned box1, not sure what's confusion here.

Turbotax software not listing "IRC 132" item description when user enters Box-14 information, that's the thing need to be fixed.

[DMarkM1]

You are correct the Box 14 amount on your W2 from a NY employer for IRC 132 Commuter benefits has been excluded from Box 1 wages and NY Box 16 wages.  The Box 14 category for that entry is "Other not classified."  That Box 14 entry is informational identifying the amount of a pre-tax contribution that was therefore not in Box 1 wages.  

NJ however does tax that amount and so it needs to be added back to your NJ taxable wages in the NJ state interview. 

1.  "Update" the "Adjustments" section.  
2. Answer "No" to the first page and then 
3. Arrive at the NJ W2 adjustments page. 
4. Add the Box 14 item and amount in the boxes provided.  
5. When you get to the NJ tax summary page at the end of the interview, you will the W2 wages are adjusted to include the amount