Why does the income amount on my federal return differ from the income amount listed on the state (according to Turbo Tax)?

[CatinaT1]

What specific lines are you looking at? It is possible you have income that is either not taxed at the federal level that is at the state level or vice versa.

We need more information to answer your question. Also, what state?

[groundcontrol88]

When I clicked on the section to file my New Jersey state return on Turbo Tax, the income amount popped up different than federal. It seems to be the box 16 number, which is different than the box 1 number. Box 1 is $49,339.50 (the amount of my income listed on the federal section), and the box 16 number is $77,210.  I am confused about this. Any ideas? 😳 Thank you!

Shirley

[JohnW152]

It's not uncommon for state wages, shown in Box 16 of your Form W-2, to be different from the federal wages shown in Box 1.  Based on what you're describing, Box 1 most likely reflects deductions from your wages that are valid at the federal level, but aren't applied to your New Jersey wages in Box 16, due to state law.  Policies vary by state.

On your federal return, you generally include Box 1 of your Form W-2 as your wages.  See Line 1a, 

Total Amount From Form(s) W-2, Box 1 in the Instructions for Form 1040 and 1040-SR. 

Meanwhile, on your state return you use Box 16.  See Line 15 of Form NJ-1040 and Line 15 – Wages, Salaries, Tips, etc. in the Form NJ-1040 Instructions. 

According to New Jersey's Common Filing Mistakes:

The wages you report on your New Jersey Income Tax return are shown in Box 16 of your W-2 and may be different from the amount of income in Box 1, which is the amount used on your Federal income tax return.

[groundcontrol88]

Thank you!