What Box Is State Withholding on a W-2?
Understand the state and local tax sections of your W-2. This guide clarifies how to interpret wage and withholding amounts for accurate state tax filing.
The Form W-2, Wage and Tax Statement, is a document employers must send to employees by January 31st each year. This form reports your annual earnings and the amount of taxes withheld from your paycheck. Understanding the specific boxes related to state taxes is a common point of confusion, but it is necessary for accurately filing your state income tax return.
Locating State Tax Information on Your W-2
The lower portion of your W-2 is dedicated to state and local tax reporting. Specifically, Box 17 shows the total amount of state income tax withheld from your paychecks throughout the year. This is the figure you will use when filing your state tax return to determine if you have overpaid or underpaid your state tax liability.
Adjacent to the state withholding amount, you will find Box 15, which lists your employer’s state ID number, and Box 16, which reports your total state wages, tips, and other compensation. The amount in Box 16 is the specific income figure upon which your state income tax was calculated. This figure may differ from the federal wages reported in Box 1, as some states do not tax the same pre-tax benefits, such as contributions to certain retirement plans.
Understanding Local Tax Information
Directly following the state information are boxes dedicated to local tax reporting, which applies if you are subject to city or other local income taxes. Box 19 displays the total local income tax withheld from your pay for the year. This amount is calculated based on the wages reported in Box 18, which shows the total wages subject to local taxation.
To provide clarity on which jurisdiction received these taxes, Box 20 contains the name of the locality. If you worked in more than one locality with income taxes during the year, you might see multiple entries or receive separate W-2s detailing this information.
What to Do with This Information
The figures from Box 17 and Box 19 are directly transferred to your state and local income tax returns, respectively. When you complete your returns, these amounts are subtracted from your total calculated tax liability to determine whether you owe additional tax or are due a refund.
If you find that any of these state or local tax boxes are blank when you believe they should contain information, or if the amounts seem incorrect, you should not attempt to file your return. Instead, the first step is to contact your employer or their payroll department directly. You will need to request a corrected Form W-2, which is officially known as a Form W-2c, to ensure you file your taxes accurately and avoid potential issues with state tax agencies.