New Jersey Form NJ-2450, Employee's Claim for Credit For Excess UI/WF/SWF, Disability Insurance, and/or Family Leave Insurance Contributions, is used to allow a taxpayer to take credit for excess contributions to certain state programs on their W-2. In a return being filed jointly, the taxpayer and spouse each file separate Forms NJ-2450 for their contributions.
The maximum employee contributions for each program change annually, and the current tax year's maximums can be found in the current year's Form NJ-1040 instructions. Be sure to familiarize yourself with the maximums, as they may affect how an individual's W-2s are entered. (See Caveats below.)
Entering the W-2
When entering Form W-2 from a New Jersey employer in the federal return in TaxSlayer Pro, care must be taken to use only the correct abbreviations in Box 14, irrespective of the abbreviations the employer used on the W-2, so that the amounts entered will flow to the New Jersey tax return for the purpose of calculating the credit on Form NJ-2450. The three allowable abbreviations are these:
- WD HC - Combined UI, WF, and SWF. If Box 14 contains more than one of these, add them together and enter the sum on a single line. (Note the space between WD and HC).
- FLI - Family Leave Insurance
- DI - Disability Insurance
Checking the entries in the New Jersey return
If Form NJ-2450 isn't being produced in the New Jersey return, you can examine the entries that would give rise to it to see why it's not being produced. From the New Jersey Tax Return menu select:
- Total Payments and Credits
-
Excess WD / HC Withheld
Excess NJ Disability Insurance Withheld
Excess Family Leave Insurance - Select any of these three menu lines. -
View Taxpayer's W2s
View Spouse's W2s - Select either of these menu lines to view the amounts flowing to Form NJ-2450 from the W-2s. If an amount is missing or incorrect, examine the W-2 in the federal return to ensure the correct abbreviation was used.
Note: Form NJ-2450 is only produced if a credit calculates.
Caveats
- If the taxpayer had only one employer, do not enter any of the contributions in Box 14 of the W-2. The taxpayer must request a refund of the overwithholding(s) from the employer.
- If the taxpayer had multiple employers, and an employer withheld more than the maximum for a particular contribution, enter only the maximum amount of that contribution in Box 14 on that employer's W-2. The taxpayer must request a refund of the excess over the maximum from the employer.
Additional Information: