City flexible benefits program
Public employee 414(h) retirement contributions and New York City flexible benefits program (IRC 125) Both the 414(h) retirement contributions and IRC 125 benefit plan amounts are reported to you in box 14 of your Wage and Tax Statement (Form W-2).
What does IRC 125 mean?
Code Section 125 allows employers to establish a type of tax savings arrangement, called a Section 125 plan or cafeteria plan, for their employees. A Section 125 plan provides employees with an opportunity to pay for certain benefits on a pre-tax basis, allowing them to increase their take-home pay.
Why is IRC 125 in W2 box 14?
Items are placed in box 14 by your employer to provide you with additional information about various components of your pay. The IRC 125 probably refers to pre- tax contributions you made to your employer’s plan for dependent child care reimbursement plan or a medical reimbursement plan or both.
What do I need to add to irc125?
You need to add the pension contribution shown in Box 14 to the reported wage amount. For Health Insurance Premiums, Dependent Care Assistance Program (DeCAP), and Health Care Flexible Spending Account (HCFSA): The amounts for these programs, covered under Section 125 of the IRS code, are reflected in Box 14, IRC125.
Where to find IRC 414 and IRC 125?
The IRC 414 (h) and IRC 125 amounts should be shown in box 14 on your W-2. When you enter them in TurboTax, it should automatically recognize the abbreviations and handle them correctly on the state return.
How to report New York City flexible benefits?
Also, if you participate in a New York City flexible benefits program, IRC 125, you must report the amount deducted or deferred from your salary as an addition modification to recomputed federal AGI on line 23 of Form IT-201, Resident Income Tax Return; or line 22 of Form IT-203, Nonresident and Part-Year Resident Income Tax Return .
