Can I claim Box 14 W2 HB/FSA as NJ medical insurance premiums included in nj wages but not in federal wages? Otherwise, box 1 is different from box 16.

[DanielV01 · Accepted solution]

Box 16 probably includes this amount already.  Easiest way to know is this:  add box 1 and box 14.  If the total is box 16, you need add nothing further.  If you were to put those figures in box 14 into the screen you are mentioning, they are not subtracted out of your income but rather added into NJ income.  The screen is asking you to add back what is not reported on the W-2, but in your case, your W-2 already includes this information.

Click on this link for a NJ website that discusses this subject a little further:  NJ Division of Taxation - NJ Income Tax Wages - State of New Jersey

[maglib]

FSA is pretax for Fed and taxable for NJ...  if you had reduced medical expenses itemized on your federal return by FSA payments, you can take a deduction in NJ for the medical expenses paid as they are considered reimbursed for Federal purposes but not considered reimbursed for NJ state purposes (NJ it is after tax).  Federal medical expense itemized deductions is limited to 7.5% of AGI and NJ only has a 2% limit so entering medical expenses that you may not have entered federally may help reduce your NJ taxes.  Other deductions in NJ would be premiums for health insurance as again they are pretax fed but after tax NJ....

[dcoon81]

That is what I was wondering - the HB/FSA is my health benefits contribution that comes out of my pay pre-tax. I would like to deduct it with my NJ return medical expenses if I can (especially since I have a balance due I am trying to reduce).

[maglib]

You can not claim the FSA, only the actually paid medical expenses using the FSA that you didn't claim federally. Does that make sense?

[marc35]

@DanielV01 are you saying, that if Box 1 + Box 14 = Box 16, then you do not need to put the information from Box 14 into TurboTax when asking about Box 14?

[DanielV01]

Correct.  If you read my post above @marc35 (even though it was a few years ago), this was in relation to New Jersey asking you what additional amounts you need to add to your NJ taxable income.  The link I provide is still valid.  Since New Jersey does not allow deductions for certain items which are deductible on the federal return, the question the program is asking is for you to enter the items that need to be included in income which are not already included in New Jersey income.  On the W2, New Jersey income is reported in box 16 on the line marked "NJ" in box 15.  If other amounts reported in boxes 12 and 14 (when added to box 1) equal what is reported in box 16, then no further adjustments are needed.

[marc35]

@DanielV01 Thank you so much!