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View Full Version : California State Wages higher than Federal Wages on W2


WestaxCheryl
Mar 8, 2015, 06:40 PM
Why are the state wages for California higher, $14,573, than my Federal wages?
It's not the 401(k) contribution - doesn't match. My medical 125 plan is only $3174

AtlantaTaxExpert
Mar 8, 2015, 06:53 PM
That is a BIG difference. The only way I know for such a large difference is if you are on a J-1 visa and part of your salary is exempt by tax treaty. California does NOT honor tax treaties.

If that is not a possibility, contact your employer's payroll department and get an explanation.