Is a 414(h) Tax-Deductible in New Jersey?
As a public employee in the state of New Jersey, 414(h) amounts listed on your W-2 represent your contributions to the state's tax-deferred retirement plan. As such, they are deductible from your income. However, in most cases, your employer has already deducted those amounts from the income reported on your W-2.
Box 14 of the W-2 is used to report amounts that may be required by the IRS to be added to or deducted from ordinary wages. For participants in New Jersey's Public Employees' Retirement System (PERS), Teacher's Pension and Annuity Fund (TPAF) and Police and Firemen's Retirement System (PFRS), mandatory current and back contributions to their retirement plans are added together and listed in Box 14 of the W-2 with the designation 414(h). Since, according to the New Jersey Treasury, those amounts have already been subtracted from wages reported in Box 16 of your W-2, any 414(h) amounts listed in Box 14 are for information only.