I live and work in New Jersey, Can you explain the difference between the Federal wage in Box 1 and the State wage in Box 16 on the W2

[7atinx0]

Are medical Premiums from Box 12 of the W2 included in the NJ State Wage amount in Box 16

[KarenJ · Accepted solution]

No medical premiums from box 12 are not included.

The wages you report for federal tax purposes may be different than the wages you report for New Jersey purposes. For example:

• New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) Plans.
• New Jersey does not allow you to deduct moving expenses or employee business expenses from wages, although you can exclude reimbursements for certain expenses if they are included in wages on your W-2.
• If you are considered a “statutory employee” for federal tax purposes, you cannot deduct your business expenses unless you are self-employed or an independent contractor under New Jersey law. The federal label of “statutory employee” has no meaning for New Jersey tax purposes.

Because of these and other differences, you must take the amount of wages from the “State wages” box on your W-2s (Box 16). Also check your W-2 to confirm that "New Jersey" or "NJ" appears in the "State" box. The "State Wages" figure on your W-2(s) from employment outside New Jersey may need to be adjusted to reflect New Jersey tax law. 

For more information, see the New Jersey Income Tax return instructions  2.9 mb.  See page 10.