Is NY FLI Listed on Box 17 of Your W-2 Tax Deductible?
Understand the tax implications of NY FLI on your W-2, including deductibility and coordination with state returns.
The question of whether NY FLI, or New York Family Leave Insurance, listed on Box 17 of your W-2 form is tax deductible is important for taxpayers looking to optimize their returns. As employees contribute to this insurance program, understanding its tax implications is critical for accurate financial planning.
FLI Contributions on W-2
Family Leave Insurance (FLI) contributions are mandatory deductions from an employee’s wages in New York, funding paid family leave benefits. These contributions are reported in Box 17 of the W-2 form and calculated as a percentage of wages, with an annual cap. For instance, in 2024, the rate was 0.455% of gross wages, capped at $399.43 annually. These figures adjust yearly to reflect changes in the state’s average weekly wage.
For tax purposes, FLI contributions are not deductible on federal returns but may be deductible under New York state tax regulations. This federal-state distinction is essential for accurate tax filings.
Deductibility Criteria
The deductibility of FLI contributions depends on New York state tax regulations. While these contributions are excluded from federal tax deductions, New York may allow them to reduce state taxable income. Reviewing the latest state tax guidelines annually is vital, as changes can affect eligibility for deductions.
Coordination With State Returns
Understanding how FLI contributions affect state tax filings is crucial for New York residents. The New York State Department of Taxation and Finance offers resources to help taxpayers accurately report these contributions. Many tax software programs also incorporate state-specific rules, simplifying the process.
FLI contributions may also interact with other state-specific credits and deductions, such as the New York State Earned Income Tax Credit. Taking a comprehensive approach to state tax filings can help maximize potential benefits.
Verifying FLI Amounts
Accurately reporting FLI contributions is necessary for tax preparation. Verify the amounts listed on your W-2 form to ensure they align with the applicable state rate. Payroll errors can occur, so contact your employer’s payroll department to resolve discrepancies before filing. Official state publications or the New York State Department of Labor website can confirm the correct rates.