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February 14, 2021
Question

On Box 14 my w-2 is marked as other with 125 what is this code?

  • February 14, 2021
  • 1 reply
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On Box 14 my w-2 is marked as other with 125 what is this code?

1 reply

February 14, 2021

This would be NY IRC 125/Sec 18 Subject to NY tax.

 

See the attached post (answer) by @rjs: IRC125 and 414(H) payments

 

When you enter this in TurboTax, it should automatically recognize the abbreviation  and handle it correctly on the state return.

 

To make sure, when you get to the W-2 summary screen ("Here's your W-2 info"), click the edit button for your W-2 to go back and check the box 14 entries. In the Box14 section, to the right of the amounts, there is a third column called "Tax Category." Make sure that the correct description has been selected in that column. If not, select the correct description from the pull-down list.  For IRC 125 it should say "NY IRC 125/SEC 18 Subject to NY tax."

 

When you do your state return, you will come to a screen that says "Your New York Income Adjustments." This will show the Section 125 amounts that are being added to your income on the NY return. The Section 125 amount will be labeled "Other Additions."