NJ for 2450 UI/WF/SWF excess

amgalamgal18 · ‎April 10, 2023

I have two W2 that resulted an overpayment of UI /WF/SWF tax ( box 14). TT generated a NJ2450 form, and it shows each employers deductions.

For 2022 NJ has a threshold for of $169.15 only.

Actual Deductions: After Turbo tax prompt to change the amount:(on NJ2450shows)

1st W2 - $381 1st W2 - $169 (amount allowed by Turbotax software)

2nd W2-$120 2nd W2 - $120 Total-----$ 501 Total --- $ 288 NJ limit- $169.00 (-) NJ limit - $ 169 (- )

Expected Refund $ 332 Partial Refund - $120

The above Illustrations shows I only a got partial refund . When TT was reviewing my returns before filing , it prompted that on my 1st W2 box 14 amount should not exceed $170. I could not continue if I don't change it to $169.15. I am not sure if the software is programmed only to accept $169.15 in each column. I did change it from $381 to $169.15, and I got a refund of $120.

On the NJ2450 form(see Attached) there's a note to enter maximum amount only which is only $169.15 each column. If only TT allowed me to enter the $381 I could have gotten the full refund.

Is this the rule that TT was programmed or following? Please Review these issue, Thanks!

https://www.state.nj.us/treasury/taxation/pdf/current/2450.pdf

ErnieS0 · ‎April 10, 2023

Your employer probably combined UI/WF/SWF with either DI or FLI.

$381 – $169 = $212, which is the maximum contribution for both DI and FLI.

Check your last pay stub or contact your payroll department. Also, your W-2 with the $381 should show either DI or FLI missing from Box 14.

You can add another line in Box 14 for either DI or FLI and get any excess DI or FLI payments back on Form 2450.

See UI/DI/FLI Credits.

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amgalamgal18 · ‎April 20, 2023

Well it just so happened that the maximum premium amounts for NJ UI\WF\SWF is $169.15, the D.I. is $212.66, and FLI is $212.66.

You used some of the numbers like $169 + $212= $381. You assumed this was the breakdown of my deduction.

I got deducted the amount of $381 since I only worked for them for 7 months, all of my other co-worker was deducted $ 454 for NJ UI\WF\SWF , how do explain that?

I asked my co-workers and they say when they did their returns thru TT they have the same issue, TT is asking not put amount more the $170 on box 14 for IU\WF\SWF.

My basic question was, WHY TURBOTAX DOES NOT ALLOW US TO PUT THE EXACT AMOUNT THAT SHOWS IN OUR W2, for BOX 14. IT ONLY ACCEPTS THE MAXIMUM OF $169.15 and that stands for the NJ maximum threshold for UI\WF\SWF (see attached).._ I

If only TT software or the program allows it, I should have gotten all my excess deductions back.

I have seen a TT TAX EXPERT responded to other TT user with same issue here; and recommended to put in the maximum amount allowed ($169.15) and recover the excess from employer. NOTE (only if you have one employer). But with two employers like me, I need to fill out NJ2450 form, and since TT only accepts the amount of $169 for box 14 and not $381, I have less refund of $212.

You also mentioned I should have changed the classification of the UI/WF/SWF to "OTHERS". When I tried that, my TAX DUE INCREASED. Your recommendation is in conflict, with one TT representative that I spoke with, she told me never to change anything and put exactly what amounts the W2 states.

It's either a TT SOFTWARE ISSUE or IT'S an NJ TAX RULE that is being followed by the software, none of the TT representatives can explain it why before submitting the return, it prompts the user to change the entry. If you ignore it the system won't continue.

Hope you TT will take an in-depth look on these issues, not just making up some answers.

2022 Employee’s Claim for Credit For Excess UI/WF/SWF, Disability Insurance, and/or Family Leave Ins...

NJ Division of Taxation - NJ Income Tax - Other Credits (UI/DI/FLI) (state.nj.us)