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Old 04-09-2008, 08:07 PM
Katie
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Default Re: Should two states income on W2 sum to Federal Gross Income ?

On Apr 9, 12:22*pm, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:
- quote -

> "D Chadha" <dcha...[at]gmail.com> wrote
> > I worked in 2 states - NJ and IL for the same employer. Following are
> > two entries in my W2:
> > 1. Under #1 (Wages, tips, other compensation) its 50K
> > 2. Under #16 (State wages, tips etc) its 41K for NJ and 10K for IL.
> > PS: I have rounded off figures for simplification.
> > My question is the combined income of IL and NJ is 51K. But in #1 of
> > W2 its 50K. Is it normal or some error in W2 ?

> Probably normal. *One of those two (or both) states does not allow for the
> "pre-tax" payment for health, pension, etc type of expenses that the feds
> do. *Does that amount ring up against any single (or multiple) of pre-tax
> items from your pay?
> --
> Paul A. Thomas, CPA
> Athens, Georgia



Or, if you worked in one of those states while living in the other,
both states would tax the same income -- in which case the state boxes
would add up to more than Box 1.

However, the difference may arise from the fact that NJ taxes employee
contributions to retirement plans (other than 401(k) plans) that are
not subject to federal tax, so the NJ wages may be higher than federal
wages for the same period.

Katie in San Diego

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
Old 04-09-2008, 07:22 PM
Paul Thomas, CPA
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Default Re: Should two states income on W2 sum to Federal Gross Income ?


"D Chadha" <dchadha[at]gmail.com> wrote
- quote -

> I worked in 2 states - NJ and IL for the same employer. Following are
> two entries in my W2:
> 1. Under #1 (Wages, tips, other compensation) its 50K
> 2. Under #16 (State wages, tips etc) its 41K for NJ and 10K for IL.
> PS: I have rounded off figures for simplification.
> My question is the combined income of IL and NJ is 51K. But in #1 of
> W2 its 50K. Is it normal or some error in W2 ?




Probably normal. One of those two (or both) states does not allow for the
"pre-tax" payment for health, pension, etc type of expenses that the feds
do. Does that amount ring up against any single (or multiple) of pre-tax
items from your pay?




--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 04-09-2008, 06:23 PM
D Chadha
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Posts: n/a
Default Should two states income on W2 sum to Federal Gross Income ?

Hi,

I worked in 2 states - NJ and IL for the same employer. Following are
two entries in my W2:

1. Under #1 (Wages, tips, other compensation) its 50K
2. Under #16 (State wages, tips etc) its 41K for NJ and 10K for IL.

PS: I have rounded off figures for simplification.

My question is the combined income of IL and NJ is 51K. But in #1 of
W2 its 50K. Is it normal or some error in W2 ?

Thanks
dchadha

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 

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federal, gross, income, states, sum
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