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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Is my box 16 of my W2 correct

Resolved Question:

I work for a government agency
Box 1 of W2 is $36,000
Box 14 of W2 is $1,000 414(H)
Box 16 of W2 is $37,000
I think box 16 is wrong. and should be $36, 000 same as Box 1. The payroll director said it''s different this year. Please advise
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

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-

http://www.nyc.gov/html/opa/downloads/pdf/w2_info_2007.pdf

 

 

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.

Customer: replied 6 years ago.
http://osc.state.ny.us/payroll/w2.htm

Please review the above sight. Keep in mind I do NOT work for the CITY of New York. Thank you for your consideration.
Expert:  RD replied 6 years ago.

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 Other
Amounts 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.

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.



Customer: replied 6 years ago.
Box 16 State Wages
The State wages reported are the same as the amount of Federal wages required to be reported in Box 1 – Wages, Tips and Other Compensation.

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 am interpreting this to say a postive amount without the minus is to be added on to the state. My concern is this is the first year it was added together in box 16, in the past it was listed in 14 and the IT150 and 201 added it as a line item, still does. The NYS income tax forms asks for Federal adjusted gross income, so Box 16 never gets put anywhere on the return. So what's the problem? I think the state is going to see 414h in box 14 and add to box 16 and look for additional tax. Where is it written that this is new this year? Thank you so much for your help and consideration. I tried calling NYS 1-800-225-5829 Personal Income Tax Center but can't hold at work long enough to talk to someone.
Expert:  RD replied 6 years ago.

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.

 

 

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.

 

Expert:  RD replied 6 years ago.

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.

http://www.nyc.gov/html/opa/html/taxes/w2.shtml

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.

Customer: replied 6 years ago.
Right it says:
Under box 14 it says, that the amount for 414 h will be added to determine amount for State taxes.

Not "is already added to determine amount for State taxes"

I email this site this morning, before I asked Just Answer.Tax

This is what they said.

Re: W2 Question
From:XXX@XXXXXX.XXX
Sent:Wed 1/30/08 3:18 PM
To: XXXXX XXXXX (Customer@msn.com)

If you are not a New York State employee, you should contact discuss this matter with your personnel/payroll office. It is their responsibility to get instructions from the NYS Department of Taxation and Finance for proper completion of the Form W-2 State Wages box.

If you are a New York State employee, please let us know your employing agency.

Gail Reese <Customer@msn.com>
01/30/2008 09:41 AM
To <payroll@osc.state.ny.us>
cc
Subject W2 Question

I work for a government agency

Box 1 has $36,000
Box 14 has $1,000 414 (H)
Box 16 has $37,000

I think box 16 should be $36,000

I did look on your website and the example and explanation are for 2006 W2's so the payroll director thinks this year is different and the 414H should be inculded in box 16 on the W2.

Would you please advise?



I wish I had a website that is the end processor of W2's to confirm that box 16 should include the 414H. It bothers me it has not in the past, this year it does.
Expert:  RD replied 6 years ago.

Hi

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.

http://www.osc.state.ny.us/payroll/w2.htm

Hope this helps!

RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience: CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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