What Is a Locality Name on Your W-2 Form?
Demystify the 'Locality Name' field on your W-2 form. Understand its tax implications and how to ensure accuracy for proper filing.
The W-2 form, or Wage and Tax Statement, serves as a document for reporting an employee’s annual wages and the taxes withheld from their paychecks. This form contains various fields that provide detailed information about an individual’s earnings and tax contributions. Among these fields is the “Locality Name,” which plays a specific role in tax reporting.
Understanding the Locality Name Field
Box 20 on your W-2 form is designated for the “Locality Name.” This field identifies the specific local jurisdiction to which local taxes were paid or are due. Such jurisdictions can include a city, county, or even a school district. The purpose of this box is to aid in the accurate reporting of local tax obligations.
The “Locality Name” field is only completed if an employee is subject to local income taxes. If no local taxes were withheld, this box will remain blank. This field works in conjunction with Box 19, “Local income tax,” which reports the actual amount of local tax withheld from your wages.
Local Taxes and the W2
Local taxes that necessitate the “Locality Name” field on a W-2 are imposed by local governments, such as cities or counties. Common examples include city income taxes, county income taxes, and sometimes other local levies like occupational taxes or school district taxes. These taxes fund local programs and services, including education, parks, and community improvement projects.
Not all areas impose local income taxes, which is why Box 20 might be blank. The amount withheld for these local taxes is reported in Box 19, “Local income tax,” and the corresponding taxable wages for local tax are reported in Box 18, “Local wages, tips, etc.” The presence of an amount in Box 19 requires a corresponding entry in Box 20.
Addressing Issues with Your Locality Name
If the “Locality Name” field on your W-2 is blank but you believe local taxes should have been withheld, or if the name listed is incorrect, you should contact your employer. Reach out to their payroll department or human resources to clarify the discrepancy. Your employer can then issue a corrected W-2, known as Form W-2c, to rectify any inaccuracies.
An accurate W-2 is important for filing your tax returns. If you cannot obtain a corrected W-2 from your employer, you may need to estimate the correct information for filing.