Have Tax Questions? Ask a Tax Expert for Answers ASAP
Your W-2 is correct. Contributions to a 414h do not reduce taxable income at the state level. SO your State income will be higher by the amount you contribute to 414(H).
YOu might want to review Para H in the link below-
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
Reporting on W-2 for 414h will not matter whether you work for NYC or any other NY Government Agency.
Please note that even in the link you provided- it states that if the amount for 414h is with minus sign than it is disregarded for state taxes otherwise it is reported for state and local taxes
Extract from link is pasted below-
Box 14 OtherAmounts to be reported:
414 (h) All non-taxable Tier 3 and Tier 4 contributions made to New York State or City Retirement Systems or to TIAA/CREF must be reported for State and Local taxes. If there is a minus sign (-) with this amount, it can be disregarded for State and Local taxes since the taxes have already been paid.
I did not find any direct link for your reference.
However, I do understand your concern and would advise you to include a note explaining the same along with your NY State income tax return.
Meanwhile, If I come across any direct link, I will post it for you.
Hopefully, this will answer your questions.
Under box 14 it says, that the amount for 414 h will be added to determine amount for State taxes.
As I looked/researched into this further, I guess you are right. You need to check with you employer and get this corrected. here is a link from the comptroller website for 2007 W-2 along with a sample W-2.
Hope this helps!