What is the category for New Jersey pens 414(h) contributions?

[ChristinaS · Accepted solution]

There's no relevant dropdown. This information, if listed in Box 14, is informational only. The taxation is already built into the numbers on your W2, so no adjustment occurs on your return.

You can ignore it, or enter as Other-Not on List. Both have the same effect, which is no effect.

Your Federal and NJ wages on the W2 should already be properly calculated to reflect the proper tax treatment. These contributions are tax deductible for federal, and not for state. Your NJ wages will be higher than federal due to NJ's taxation of 414(h), 403(b), HSA, health insurance, and more.

[abeyankee1]

I appreciate your answer that the information in. Box 14 is informational only. I chose to delete it because I also file a N.Y. return and if you do that and click Other the N.Y. return can’t be efiled. It doesn’t recognize Other in that box. Since it’s already factored into my income amounts I think leaving it out is best. 

[app1jpk]

I work in NJ as a teacher but live in NY.  My W2 lists a dollar amount in box 14 flagged as 414h.  In Turbotax do I enter a category of NY IRC 414H Subject to Tax, NY IRC 414H Tax Exempt, or Other?  In the past, I've entered Other resulting in not being able to e-file.  Also, entering either Subject to Tax or Tax Exempt increased my NYS refund as opposed to entering Other.

[LenaH]

It depends. Please check the list below and determine the source of your retirement contributions. If you are a member of one of those groups and that is the source of your retirement contributions, then you should select Subject to NY Tax.  Otherwise, select Tax Exempt.  

The following 414(h) retirement contributions shown on federal form W-2, Wage and Tax Statement, are taxable by New York State.

• A member of the New York State and Local Retirement systems, which include the New York State Employees' Retirement System and the New York State Police and Fire Retirement System.
• A member of the New York State Teachers' Retirement System.
• An employee of the State or City University of New York who belongs to the Optional Retirement Program.
• A member of the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Board of Education Retirement System, the New York City Police Pension Fund, or the New York City Fire Department Pension Fund.
• A member of the Manhattan and Bronx Surface Transit Operating Authority (MABSTOA).

@app1jpk

[MarylandRetriever]

TurboTax needs a category description for box 14. It lists 414(h) under the category NY 414(h), but I live and work in NJ at Rutgers U. -- and the answers here do not answer my question about categories

[KrisD15]

If you meet any of the following, the contributions are taxable for New York:

• A member of the New York State and Local Retirement systems, which include the New York State Employees' Retirement System and the New York State Police and Fire Retirement System.
• A member of the New York State Teachers' Retirement System.
• An employee of the State or City University of New York who belongs to the Optional Retirement Program.
• A member of the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Board of Education Retirement System, the New York City Police Pension Fund, or the New York City Fire Department Pension Fund.
• A member of the Manhattan and Bronx Surface Transit Operating Authority (MABSTOA).

If you live and work in New Jersey, it seems you would file a Non-Resident return for NY and claim the 414(h) as income.

According to the state of New York:

"If you are a member of a public employee retirement system (such as the New York State and Local Retirement System) and made 414(h) retirement contributions to your retirement plan, then you must report the contributions as an addition modification to your federal adjusted gross income on your New York State income tax return. This addition modification is reported on line 21 on Form IT-201, Resident Income Tax Return; or line 21 of Form IT-203, Nonresident and Part-Year Resident Income Tax Return. Your 414(h) retirement contributions are reported to you in box 14 of your Form W-2, Wage and Tax Statement."

Additionally, you might want to contact your Payroll Department and get clarity on how to report the contributions. 

[ClaudeNJ]

I live in New Jersey but I work in New York. My spouse works in New Jersey and has 414(h) contributions to a New Jersey pension and does not have any earnings out-of-state. I file a non-resident return to New York; since my wife's 414(h) contributions are not to any of the New York pensions listed, is it correct to choose "NY IRC 414H Tax Exempt"? Choosing "Other" will not allow me to efile.

[app1jpk]

Claude,

I have a similar situation. We live in NYS, however my wife is a teacher in NJ.  Her W2 lists 414h contributions. If I enter it as stated on the W2, NYS does not permit us to e-file.  To get around this, we entered "414h Not" and we were able to complete our taxes and efile.  Hope this helps.

[AmyC]

@ClaudeNJ  Your wife has no taxable NY income so it is all exempt from NY tax, including the 414h.

[showrf]

This doesn't answer the question that everyone here is asking. We all know its exempt from NY if you live in  NJ but what is the proper way to show it in the W2 so that we can efile. Some said trick it by adding "not" others said use the drop down as NY tax exempt. Which is correct for this work around...look at the question and answer it....

[AmyC]

Box 14 is usually informational but can be tax related. You don't have to enter box 14 information at all if it isn't relevant. If you need to enter the information, you can mark it as exempt from NY. How you enter it only affects the worksheets which are not transmitted.

Only the actual tax forms are transmitted. The only thing that matters is the omission of the 414h.  You can omit, mark 414h no, or NY tax exempt and get the same answer. Personally, I would leave box 14 blank for this entry. Second choice would be NY exempt.

@showrf

[showrf]

Ok thank you.