You don't need to add back a Traditional 401K. NJ does allow a deduction for a 401K. However, if the retirement plans is a 403B (marked with code E instead of code D in box 12), or an IRA, these deductions are added back into income for NJ. Typically speaking, the tax differences are already reported on your W2 (which you will notice if the amount in box 16 for NJ is different than box 1 on the w2). For additional information, please click on this link for the NJ website that discusses this: NJ Division of Taxation - NJ Income Tax Wages - State of NJ
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Still have questions?Make a post