IRC 132 New York Question

Forum|Forum|1 year ago
February 1, 2025
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On the wages and income section of turbo tax I have entered IRC 132 in the description, however there is no correct category in the category dropdown menu. The closest thing is IRS section 18, but that clearly does not correspond to a transportation benefit. What should New Yorker's select for the category for IRC 132?

LenaH

If none of the categories apply when entering your W-2, scroll to the bottom of the list and choose Other (not classified).

The amounts for transportation benefits aren't subject to taxable wages, Social Security, Medicare, state, or city taxes and should have already been deducted in the appropriate boxes on your W-2 form. This entry is for informational purposes only.

For more information about Box 14, please see What is box 14 on my W-2 for?

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TaxLady1975Author

When IRC 132 is entered manually after selecting "other" there is no modification to the refund as if the figure is not being tabulated and it is not included as a pre-tabulation in box 1.

KeshaH

Section 132 benefits won't change your New York refund or balance due because this amount is not subject to tax in New York, unlike Section 404(h), for example.

When you choose the dropdown on the W-2 for Section 414(h), that amount is added back to your NYS tax return because it isn't considered an item that is excluded from income tax in New York. However, the Section 132 benefits aren't taxable in New York, so there is no add back.

There'd only be a subtraction if the benefits were included in federal taxable income. However, these amounts are generally already excluded from federal gross income, so there's no need to subtract this amount from your New York tax return.