Client received W2 with entries in box 14 IRC 414H and IRC 125. I am not sure where to enter the, it's my understanding that they should be taxable
Thank you in advance
414h is instead of a 401k, and tells us this is a governmental employee. It is being reported because it is in a retirement account (trust) and will be taxed when taken. The only issue, as I recall, is whether it is considered employee or employer and subject to FICA, which should already have been computed and is part of that W2 already.
Box 14 is informational and neither of these is a separate entry for the 1040. A specific State might have some consideration for when they start taking that money, as a sourced income for retirement as taxed or not.
414 h contributions for a state employee in NJ are deductible from federal wages pretax fed ..
POST TAX NJ meaning in future years when pension is received taxable form 1040 ...excluded from nj the contributions cost basis .
i had same question re do we need to enter anywhere ? answer is no info purposes only ...
"re do we need to enter anywhere ?"
Yes, enter the W2 info. No, don't enter the informational box info. It's already a subset of the main boxes, so it is already taken into consideration.
This is no different for any other W2. Box 14 is information. You would only enter that piece of info, if it matters somewhere. Example: tracking some sort of Basis, or a child care deduction, or clergy deductions that apply to their SE activities.
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