What is SEC125 on W2

[lojo9261]

What does SEC125 mean on a W2

[jerry2000 · Accepted solution]

SEC 125 is your employer's benefit plan. It is also known as a "cafeteria plan". Usually, what is reported there is your medical insurance premiums that are paid with pre-tax income. They are not taxed and are not included in your W-2 Box 1 wages so you can not deduct them as medical expenses.

[SweetieJean]

Also referred to as a Flexible Benefits plan.

[mel4487]

Why can’t you deducted when you are paying for it?

[SethH]

Because you were *NOT* taxed on it. If you had been taxed on it, you would be able to deduct it.

[BobPin]

So what category in Premier would SEC 125 fall under? I see nothing for Federal that applies. Should I use "Other-Not Listed"? And what would I use if it appears in the New Jersey state tax?

Thank you (I'm a newbie at this). 🙂

[DMarkM1]

I assume you are posting about entering a form W2 information into TurboTax that has "Sec 125" and an amount in box 14 and you did not have a NY W2.  In the federal "Income" tab, the W2 topic you would enter "Sec 125" in the box 14 description and the amount in the box 14 amount box and unless your Box 14 specifies one of the NY IRC Sect 125 categories you will select "Other - not listed."  

Entries here do not affect tax calculations as box 14 is an informational area for the employer to use.  Certain category selections will generate specific interview questions in other sections for example, a NY State interview, as applicable.  This will be automatic in TurboTax as you progress through your return interviews.  

A box 14 with section 125 information will not generate any specific entries in a NJ state return.  The other boxes on the W2 have already been adjusted and will automatically flow to your NJ state return.

Here is a link with more information on Box 14 entries on a NJ W2.  

[BobPin]

Thank you, DMarkM1! The W2 is from the state of New Jersey and is my wife's. She works for the state. The link you sent was really helpful. So i'm going to mark both boxes on the Federal Return as "Other" and let it flow into the New Jersey return automatically.

Take care and thanks again!

[mrcuozzo]

A simple yes or no as to whether we need to enter it will suffice

[PaulaM]

You are posting on an old thread. What is your question?