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    bashdrew's Avatar
    bashdrew Posts: 17, Reputation: 1
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    #1

    Feb 24, 2009, 01:25 PM
    w2 state wages total greater than federal wage
    Hi,


    My w2 has 2 state wages, NJ and KY. I just noticed it recently that the total wages (box 16) for the 2 states is greater than my federal wages (box 1). Is this valid or should I ask my employer to revise my w2? I appreciate any suggestions. Thank you.


    Regards,
    bashdrew
    allcraze's Avatar
    allcraze Posts: 2, Reputation: 1
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    #2

    Feb 24, 2009, 02:10 PM
    The state wages can be greater than federal wages if you had any pre-tax investments (e.g. 401K). The pre-tax status is only for federal tax purposes and not state tax purposes, so you will have higher state tax eligible wages than federal tax eligible wages.
    bashdrew's Avatar
    bashdrew Posts: 17, Reputation: 1
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    #3

    Feb 24, 2009, 02:16 PM
    Quote Originally Posted by allcraze View Post
    The state wages can be greater than federal wages if you had any pre-tax investments (e.g. 401K). The pre-tax status is only for federal tax purposes and not state tax purposes, so you will have higher state tax eligible wages than federal tax eligible wages.
    Thanks. I will ask my employer about this.


    Regards,
    bashdrew
    Glenrockcpa's Avatar
    Glenrockcpa Posts: 2, Reputation: 1
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    #4

    Apr 1, 2010, 03:32 PM
    Nj wages are greater than federal wages not because of 401K's, but because of Section 125 cafeteria plans (i.e. pretax insurance premiums paid by the employee for dental, medical, has, fsa) 401K's are treated the same for NJ and federal. Go to your paystub add up the pretax health related items and you will find the difference.

    Tom Sienicki, CPA
    Glen Rock, NJ
    Glenrockcpa's Avatar
    Glenrockcpa Posts: 2, Reputation: 1
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    #5

    Apr 1, 2010, 03:32 PM
    Nj wages are greater than federal wages not because of 401K's, but because of Section 125 cafeteria plans (i.e. pretax insurance premiums paid by the employee for dental, medical, has, fsa) 401K's are treated the same for NJ and federal. Go to your paystub add up the pretax health related items and you will find the difference.

    Tom Sienicki, CPA
    Glen Rock, NJ
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