TAXMAN Posted February 4, 2016 Report Share Posted February 4, 2016 OK TP w-2 shows a difference in wages box1 to ss wages in box 3. The difference in these two are coded 414H in box 14. This is a county school w-2. I think not qualified for the 8880 form. Am I wrong? Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted February 4, 2016 Report Share Posted February 4, 2016 You are correct. The 414H (at least in NY) is a MANDATORY contribution to the state retirement plan. Form 8880 gives a federal credit for VOLUNTARY contributions. You didn't ask, but the 414H contribution is NOT taxed by the federal (you noticed the difference between boxes 1 and 3), but IS taxed by NYS. When the client retires, the reverse is true - the pension distributions will be taxed by the feds, but not by NYS. 1 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 4, 2016 Report Share Posted February 4, 2016 most w-2's don't add it to the NY wages, you have to do the add back on the state form 1 Quote Link to comment Share on other sites More sharing options...
TaxCPANY Posted February 6, 2016 Report Share Posted February 6, 2016 http://tax.custhelp.com/app/answers/detail/a_id/603/~/are-public-employee-414-(h)-contributions-taxable-by-new-york-state%3F provides a decent list of the types of 414(h) we're likely to encounter. Quote Link to comment Share on other sites More sharing options...
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