Please review the following information about IRC 125 on the NYS return to make sure it's entered correctly.
The IRC 125 amounts are shown in box 14 of your W-2. When you enter them in Turbo Tax, it will automatically recognize the abbreviations and handle them correctly on the state return. To make sure, when you get to the W-2 summary screen ("Here's your W-2 info"), click the edit button for your W-2 to go back and check the box 14 entries. In the Box 14 section, to the right of the amounts, there is a third column called "Tax Category." Make sure that the correct descriptions have been selected in that column. If not, select the correct description from the pull-down list..For IRC 125 it should say "NY IRC 125/SEC 18 Subject to NY tax."
When you complete your state return, you will come to a screen that says "Your New York Income Adjustments." This will show the Section 125 amounts that are being added to your income on the NY return. The Section 125 amount will be labeled "Other Additions."
