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Why is Sec. 125 amount not listed in Box 14?

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Level 1

A NY client presents W2 with no amount indicated in box 14 for Sec.125.  There is, however,  a reconciliation of wages attached to the W2 which shows $8,816.22 for Section 125.  Should this amount be listed in box 14 and therefore an "Addition" on the NYS return?

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Level 15

Certain §125 benefits require reporting while others not.

As far as §125 is concerned, NY regulations 20 CRR-NY 112.2 only require adjustment for plans "established by the City and certain other employers".  Otherwise, NY conforms to IRC for the tax treatment of §125.  This is also consistent with the instructions for IT-225.

In other words, unless your client was employed by the NYC or one of those institutions specified (e.g. university), no addition for §125 should be necessary.

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Still an AllStar

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Highlighted
Level 15

Certain §125 benefits require reporting while others not.

As far as §125 is concerned, NY regulations 20 CRR-NY 112.2 only require adjustment for plans "established by the City and certain other employers".  Otherwise, NY conforms to IRC for the tax treatment of §125.  This is also consistent with the instructions for IT-225.

In other words, unless your client was employed by the NYC or one of those institutions specified (e.g. university), no addition for §125 should be necessary.

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Still an AllStar

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Level 15

Employers can put anything they want, or nothing, in Box 14. But yes that is taxable for NY.


ex-AllStar
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Level 15
See @itonewbie answer.  I was wrong about NY

ex-AllStar
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Level 1
Got it thank you.
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