S125 addition to NY State Income

I'm confused. The W2 has a federal amount in box 1, which does not include §125 money(correctly) and box 16 for state wages also does not include it, although it should for NY. I am correct so far?

Then you have an amount for §125 money somewhere which is being added back to the federal income on the NYS 203. This sounds like PS is adding that §125 money into income in order compare apples to apples for NYS. This is a NYS non-resident 203, right?

The medical in box 14 NYS 125 plan amounts carry to the MYS 203 but not in the NYS column. Put it in the NYS column.

Click on line 22 of IT 203 brings up a list of additions to report.  Sec 125 addback for NY City is listed, line A-3.  Is that what you are looking for?

This is for a part-year resident, so partially correct, Accountant Man.

I did include it on the Add / Sub (203), I was just confused as to why it would be transferred to the Federal column, and not the State as well. But I suppose that is because the State amount on the W-2 should have included it in State wages to begin with.

So, just to make sure this is right, I have it auto-transferred to IT-203 line 22 Federal, manually entered for line 22 NY State, and the Add/Sub(203) line A-3. It looks like it was automatically transferred to the Tax Payment Worksheet, line 20.

I just want to make sure it's not double-counting this addition. Also, from what I've read, it seems that the possibility that the IRC125 is NOT subject to NY State tax, is that correct?

Thanks for your help.

It is not subject to NY State tax, but to NY City tax if applicable

Glossy, am I misinterpreting this, then? 

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