Should two states income on W2 sum to Federal Gross Income ?


D

D Chadha

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
 
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P

Paul Thomas, CPA

D Chadha said:
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?
 
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