Hi,
Do I have this correct?
I paid $3900 over 12 months in bi-weekly deductions from my check for health insurance. My employer paid the rest of the premium.
So, I see block 1 on my W2 is 3900 less than block 18. I assume that's the extent of how you get the credit deduction federally?
And I assume being a gross income state, you get nothing back for the 3900 from NJ?
Thank you!
As far as your federal return, and box 1 of your Form W-2 being less than box 18, you're almost correct -- you're not taxed on the health insurance that you're seeing deducted from box 1, giving you a tax break for your contributions.
And, as far as the W-2 and New Jersey income, you're correct. For your New Jersey return, you use your “State Wages” from box 16 of your W-2, not the federal wages shown in box 1. See the Instructions for 2019 Form NJ-1040 for more information.
As far as your federal return, and box 1 of your Form W-2 being less than box 18, you're almost correct -- you're not taxed on the health insurance that you're seeing deducted from box 1, giving you a tax break for your contributions.
And, as far as the W-2 and New Jersey income, you're correct. For your New Jersey return, you use your “State Wages” from box 16 of your W-2, not the federal wages shown in box 1. See the Instructions for 2019 Form NJ-1040 for more information.