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I think I need to edit the categories of my W2 form entry in my Federal tax return for the IRC 125 not to show up in my state return (in turbotax).
Follow up question:
So If I do not have a 125 IRC on my W2 (it is still showing up), should i just ignore it (that is enter nothing) and hit the Continue button?
Yes, if you have none, leave it blank - do not enter zero - or delete the zero if one is there. Then click Continue.
Thanks Amy. So if I can reinterpret your answer, PFL and SDI do not count towards the New York State portion of IRC 125
Right. Those are required monies that must be taken out, so they count as a tax.
The 125 is pretax health insurance, retirement, etc. The 125 is based on choices you make and take out pre-tax. The IRC 125/ cafeteria plan is not considered a tax.
So I did some searching, and it appears that many people who file New York state taxes have experienced this issue for years. Here is exactly what helped me clear the "error",
Form IT-255 is New York State Modificaitons. If you don't need that form, you can delete it by following these steps while working on your state tax return in TurboTax:
Find the form or schedule you want to remove in the list and click on the delete icon to remove it.
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