i have a us gov't w-2 that shows "NT Health Benefits" in box 14. This amount is non-taxable, and not in box 1 wages, it also is not in box 3 or 5 totals. Anyone know what this represents? Is it an adj to NJ wages?
SmartCPA: Yes, I will agree with you that for NJ, you should assume you have to add that FSA back to NJ wages. But don't forget, by the same token, you can also show those medical costs as NJ medical costs, even though you can't double-dip on Federal Schedule A.
That's your pre-tax healthcare premiums that you paid. It's already been deducted from your gross pay so you don't pay tax on it. The employer puts it there for your information only.
Jay in Georgia
, PartnerAll Star
Did you ask the client? Look at a pay stub?
Don't have a pay stub, and the client has no clue. I can ask for a pay stub, but was wondering if anyone else came accross this with a government employee.
It's probably the FSA, which reduces wages, and then you go to the doctor, you submit forms to your health insurance carrier, they pay you a little something and deny the rest, and they or you submit the "EOB" to the "FSA" who then either reimburses you the difference or finds an excuse to deny it and you have to go back and fax them the info all over again. (I've had personal experience with this, not just clients, hence all my negative comments.)
End of the day: the FSA turns what would have been probably non-deductible medical expenses uselessly on Schedule A and not beating the 7.5% floor (possibly not even the 2% NJ floor) to become excludable right off the W2. But you have to go thru hell and high water to get the benefit in some cases.
BUT: FSA's for such states as PA, are a whole different ball game, from FSA's for those who live in NJ.
Doesn't the W2 show NJ wages higher than Federal, by the amount (roughly at least) of the FSA? Any number of my NJ clients in private industry have such a difference with their NT health benefits in Box 14. I don't have any gov't employees from NJ, so I don't know. The gov't worker in my household -- we're in PA.
Let's put it this way: if Uncle Sam made the W2 come out such that the NJ wages aren't appreciably different from Federal wages, then just leave that "NT Health Benefits" info alone, and don't double-dip on Schedule A nor the NJ health deduction.
But if it's anything like those private employers of my NJ clients (NJ wages looking significantly higher than Federal wages), then you should leave everything along at the Federal level, and make sure not to take the health insurance premiums or doctor bills or whatever, all over again on Federal Schedule A. But on the NJ return, you should indeed take the health insurance as part of the NJ health deduction.
It's a NY W-2, so there ae no wage differences shown for NJ, and no explanation with the W-2 - par for government work I guess. I realize that if it's a MED 125, then it's in NJ gross income and deducted as medical for NJ. I just wasn't sure if it was similar to a MED 125 since it is a government agency. SInce it's not in boxex 1,3, or 5, i will assume it is a MED 125 and increase NJ Wages and medical expenses
It is actually the TOTAL of all health benefits paid by the employee. It does not include any benefit paid by the employer. The health benefits include but are not limited to health premiums, FSA contributions, Dental Insurance, Vision Insurance, etc. You would need to get the employees last Earnings and Leave statement of the year in order to reconcile the amount listed as NT HEALTH BENEFITS on the W-2.
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