Question

Fixing state tax return

Forum|Forum|4 years ago
March 25, 2022
1 reply
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Dear Support,

Filing jointly. Husband and wife live in NJ. Husband works in NJ, wife works in NYC. currently working on state tax portion of NYS. When I completed it, several issues came up and am trying to fix them.

This is what came up:

Check This Entry

Other Additions/Subtractions Stmt(225): NYS Addns - Code A-101 NY State allocated amount shouldn't be greater than total amount.

NYS Addns - Code A-101 [need to input a number]

Part I Other New York Additions (IT-201 line 23, IT-203 line 22)

A-101 New York City flexible benefits program (IRC 125)
NY State allocated amount of above [need to input a number]

what number do I need to input here? There is actually already a number there pre-filled, but I am assuming that it's an incorrect number.

Thank you so much

LenaH

The IRC 125 is in Box 14 of your wife's W-2 form. The amounts for this flexible benefits program, covered under Section 125 of the IRS code, is not subject to federal, Social Security, and Medicare taxes. However, the amount in the IRC 125 Box is subject to New York State and City taxes. The NYS income tax instructions direct the income tax filer to report wages as they appear on the W-2 in Box 1 then to add back the amount to arrive at New York State/City taxable wages.

The amount would be an addition to Form 225 for Code A-101. It would also be the NYS allocated amount on Form IT-203 since it needs to be added back to New York State/New York City taxable wages.

The number pre-filled most likely is the number from your wife's W-2 Box 14.

For more information, please see NYC Payroll and IT-225 Instructions.

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