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SEC125

 
 
Ken
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      04-13-2004, 09:51 AM
I have an amount marked SEC125 in box 14 of my W2 form.
This site: http://www.lynncompany.com/sec125_401k.html
indicates: Section 125 P.O.P. allows employee payroll
deductions for most group health, dental, vision, and life
insurance premiums to be taken before FICA/Med, SDI, federal
and state income taxes. However I'm using TurboTax to do my
Taxes for 2003 and it doesn't give me any options to use
this info in any useful ways to reduce my taxes. Is this
amount supposed to be in a different box? Shouldn't this be
a pretax deduction that would reduce my tax burden? Any
help on this should be appreciated.

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Phil Marti
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      04-14-2004, 07:05 AM
(E-Mail Removed) (Ken) writes:

> I have an amount marked SEC125 in box 14 of my W2 form.
> This site: http://www.lynncompany.com/sec125_401k.html
> indicates: Section 125 P.O.P. allows employee payroll
> deductions for most group health, dental, vision, and life
> insurance premiums to be taken before FICA/Med, SDI, federal
> and state income taxes. However I'm using TurboTax to do my
> Taxes for 2003 and it doesn't give me any options to use
> this info in any useful ways to reduce my taxes. Is this
> amount supposed to be in a different box? Shouldn't this be
> a pretax deduction that would reduce my tax burden?


It already did. If you compare box 1 of the W-2 with the
gross pay YTD on your last 2003 paystub you'll find that the
section 125 amount has already been deducted.

Phil Marti
Topeka, KS

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Sassy Baskets
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      04-14-2004, 07:24 AM
(E-Mail Removed) (Ken) wrote:

> I have an amount marked SEC125 in box 14 of my W2 form.
> This site: http://www.lynncompany.com/sec125_401k.html
> indicates: Section 125 P.O.P. allows employee payroll
> deductions for most group health, dental, vision, and life
> insurance premiums to be taken before FICA/Med, SDI, federal
> and state income taxes. However I'm using TurboTax to do my
> Taxes for 2003 and it doesn't give me any options to use
> this info in any useful ways to reduce my taxes. Is this
> amount supposed to be in a different box? Shouldn't this be
> a pretax deduction that would reduce my tax burden? Any
> help on this should be appreciated.


It WAS a pretax deduction and it DID reduce your tax burden.
Your software isn't doing anything with it because it's
already been done.

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Christopher Green
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      04-14-2004, 07:43 AM
(E-Mail Removed) (Ken) wrote:

> I have an amount marked SEC125 in box 14 of my W2 form.
> This site: http://www.lynncompany.com/sec125_401k.html
> indicates: Section 125 P.O.P. allows employee payroll
> deductions for most group health, dental, vision, and life
> insurance premiums to be taken before FICA/Med, SDI, federal
> and state income taxes. However I'm using TurboTax to do my
> Taxes for 2003 and it doesn't give me any options to use
> this info in any useful ways to reduce my taxes. Is this
> amount supposed to be in a different box? Shouldn't this be
> a pretax deduction that would reduce my tax burden? Any
> help on this should be appreciated.


Section 125 deductions have already been removwed from your
taxable wages (for income tax, not for Social Security). You
have already received all the tax benefit that is coming to
you from these deductions; you can't deduct them anywhere
else, because that would be deducting them twice.

--
Chris Green

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Bob Sandler
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      04-14-2004, 08:41 AM
> I have an amount marked SEC125 in box 14 of my W2 form.
> This site: http://www.lynncompany.com/sec125_401k.html
> indicates: Section 125 P.O.P. allows employee payroll
> deductions for most group health, dental, vision, and life
> insurance premiums to be taken before FICA/Med, SDI, federal
> and state income taxes. However I'm using TurboTax to do my
> Taxes for 2003 and it doesn't give me any options to use
> this info in any useful ways to reduce my taxes. Is this
> amount supposed to be in a different box? Shouldn't this be
> a pretax deduction that would reduce my tax burden?


The amount of wages in box 1 of your W-2 has already been
reduced by the SEC125 amount. Your tax has therefore been
reduced because your reported wages are lower. The amount in
box 14 is just for your information.

If you are an employee of New York City or certain New York
City agencies, then the SEC125 amount may affect your state
taxes. In TurboTax it should be entered in box 14 of the W-2
with type code G or H, depending on whether or not it is
subject to NY State tax. If you don't know whether your
particular NYC Section 125 plan is subject to NY State tax,
you will have to ask your employer. To find more information
in the TurboTax Help, enter "Section IRC125" in the "Have a
question?" box and select the first item in the results
list, "Section IRC125 Flexible Benefits Program."

Bob Sandler
not a tax professional

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Ken
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      04-18-2004, 04:53 PM
Thank you all for the quick responses. Getting tax advice
at this time of year is fustrating at best. Good luck to
you all.

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