Updated October 24, 2026. Quick answer: Line 15 of the 2025 NJ-1040 is for wages, salaries and tips. The instruction is “Take the amount from box 16 of your W-2” and it includes a note about retirement plans: “This may cause your State wages (box 16) to be higher than your federal wages (box 1).”
What this line asks
The line is labeled Wages, Salaries, Tips, etc. The booklet’s opening statement reads “Enter the total of State wages, salaries, tips, bonuses, commissions, etc., from all employment both inside and outside New Jersey.” It then points to the form to use: “Take the amount from box 16 of your W-2”.
Box 16 is the state wages box, which can differ from the federal wage figure. If you are comparing it with the federal return, see Form 1040 line 1a. For the state picture on retirement income, see New Jersey retirement taxes.
Who it applies to
The instruction is written for anyone with W-2 wages, wherever the job was: “from all employment both inside and outside New Jersey.” It adds a note for people with jobs elsewhere: “If you were employed outside New Jersey, you may need to adjust your wages to reflect New Jersey tax law.”
The booklet gives one example of that adjustment: “if you had a Section 125 cafeteria plan that is taxable for New Jersey purposes but is not included in box 16 of your W-2, you must add that amount back into your State wages.”
What the instructions say to enter
| Step | What the booklet says |
|---|---|
| What to total | “Enter the total of State wages, salaries, tips, bonuses, commissions, etc., from all employment both inside and outside New Jersey.” |
| Where to find it | “Take the amount from box 16 of your W-2” |
| What counts | “Include all payments whether in cash, benefits, digital assets, or property.” |
| Work outside New Jersey | “If you were employed outside New Jersey, you may need to adjust your wages to reflect New Jersey tax law.” |
| Retirement plan contributions | “Under New Jersey law, contributions to retirement plans (other than 401(k) Plans) are included in State wages on the W-2 in the year the wages are earned.” |
| Meals and lodging | “You can exclude meals and/or lodging reported as wages on your W-2 if:” Numbered conditions follow in the booklet. It also says “If you exclude the value of meals and/or lodging from your wages, you must enclose a signed statement explaining how you met these conditions.” |
| Business expense reimbursements | “Employee business expenses are not deductible for New Jersey tax purposes.” |
| Moving | “Moving expenses are not deductible for New Jersey Income Tax purposes.” |
| W-2 copies | “You must enclose all W-2s with your tax return.” |
Retirement plan contributions
Because many readers are building toward retirement while still working, the booklet’s retirement-plan paragraph matters on this line: “Under New Jersey law, contributions to retirement plans (other than 401(k) Plans) are included in State wages on the W-2 in the year the wages are earned.” It continues: “This may cause your State wages (box 16) to be higher than your federal wages (box 1).”
For how 401(k) and IRA money is treated when it comes out of the plan, see New Jersey 401(k) and IRA withdrawals and whether New Jersey taxes pensions.
Where the result goes next
The booklet gives this carry instruction for taxes paid elsewhere: “If you paid taxes to another jurisdiction on wages entered on this line, see the instructions for line 44.” It also says “You must enclose all W-2s with your tax return.” See also out-of-state pensions in New Jersey.
Part-year residents
The booklet prints a separate paragraph: “If your W-2 includes only wages you earned while you were a resident, use the amount from box 16.” “If your employer did not separate your resident and nonresident wages on the W-2, you must apportion the amount in box 16 according to the time you lived in New Jersey.” “Include only the actual amount you earned while you were a resident.”
Edition and line numbers
This page reads the 2025 NJ-1040 New Jersey Resident Return booklet, the current file the New Jersey Division of Taxation served on 2026-10-24. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Using the federal wage figure by habit. The booklet says “Take the amount from box 16 of your W-2”
- Leaving out retirement plan contributions that the W-2 already includes. The booklet says “This may cause your State wages (box 16) to be higher than your federal wages (box 1).”
- Mailing the W-2 attached to the return. The booklet says “You must enclose all W-2s with your tax return.” and then “Do not attach them to your return.”
Related: New Jersey retirement taxes, Form 1040 line 1a, New Jersey 401(k) and IRA withdrawals, whether New Jersey taxes pensions, and out-of-state pensions in New Jersey.
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Answer againSources
- 2025 NJ-1040 New Jersey Resident Return booklet (instructions and forms), New Jersey Division of Taxation: www.nj.gov
- 2025 Form NJ-1040 New Jersey Resident Income Tax Return, New Jersey Division of Taxation: www.nj.gov
Read from the state revenue documents linked above on October 24, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.