I live and work in NJ. On my paycheck, my new employer has been showing my nj state sui & di as part of my taxable gross income, as well as showing it as a state tax deduction. When I questioned this, my employer said that because they pay it, they need to show it as a benefit so that I can be taxed on the dollar amount. They claim that they are following nj state tax law.

I have never seen this shown as part of gross income on a paycheck before. Is this something new?

Does this mean that I will no longer be able to itemize my nj sui/di on my tax returns anymore?

:confused:

It is NOT something new; I have seen it on NJ W-2s for about five years.

Yes, it is perfectly legal.

No, youi can still itemize it.