Do i have to enter 'other cafe 125' amount in other wage adjustments in the state return? The amount is being deducted from my gross pay and calculations on box 1 amount

Forum|Forum|5 years ago
April 6, 2021
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Other Cafe 125 has been included in my W2 and is being substracted from my gross pay, and not being included in Box 1 Wages. Do i still need to include it in the 'Other Wages -adjustments' section? if I do, my state return does get smaller

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MAK70

It depends on the state (for example NJ and CA)- in general the Cafeteria benefits are excluded from wages for income tax at the federal level. Some states require you to add back as income.

5kiko238Author

Thank you, I live in NJ, so would you know if i need to add it or not?

BillM223

"Other Cafe 125" - where does appear on your W-2? In box 14? Do you have any idea what particular benefit this refers to?

Is this amount included in State Wages in box 16? That would be a clue that your employer at least believes that it is taxable in New Jersey.

Are you positive that this amount has been removed from Wages in box 1 on your W-2? How do you know this? Did your employer tell you?

I just want to pin down what we know so that we assist you.

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5kiko238Author

Hello,

Thanks for your answer.

So this amount appears on top right hand side of the W2 - where it states 'Your gross pay was adjusted as follows to produce your W2 statement'. This is what my employer contributes for health and life insurance.

Then I have some columns, one states 'Wages, Tips, other Compensation Box 1 of W-2'

Gross pay amount appears and the Other cafe value is being subtracted, which is what is appearing in

Box 1.

For state wages in Box 16, I have a similar calculation as I've expressed before in a different column 'xxx State, Wages, Tips etc, but the 'other cafe' is marked as N/A in there. and the result is what is being shown on Box 16.