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Level 1
posted Mar 18, 2020 11:44:39 AM

Cafeteria Plan on w2

I was given a w2 of my cafeteria plan social security and medicare taxes were with held but not Federal. Do I enter this as I would any other w2 in turbo tax? Is the amount then eligible to be taxed? I thought the purpose of the plan was to not pay taxes on the amount you contribute.

 

Also it appears that the plan I use took out their states taxes and not my states taxes, do I have to file the other states taxes then?

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1 Replies
Expert Alumni
Mar 18, 2020 12:08:19 PM

Are you an employee of this company? Or are you receiving retirement benefits of some sort?

 

I can't tell from your question if you have income reported in box 1 of the W-2 but no federal withholding in box 2 or what.

 

Items in a cafeteria plan are normally removed from income (box 1) before the W-2 is printed. But I don't know enough about your W-2 to know if this is what happened.

 

Note that many items may avoid federal income tax but not Social Security and Medicare taxes. It depends on what this is for.

 

As for the state withholding. I am guessing that your employer is on one state and withheld taxes for that state, but that you physically and work in another state. Is that right? 

 

How the state returns are done depends on which states they are - could you tell us what they are?