why are my state wages and local wages different

In certain States, items that can be excluded from federal wages (for instance contributions to some types of retirement accounts) are not deducted from state salaries. Enter the state withholding amount in the Amount column next to the applicable. *If our Bot Stacy cannot answer your question, you will be able to chat with our Live chat agents. Ask questions and learn more about your taxes and finances. Can we please revisit this question in 2022. My CA state wages are $6,000 lower than the federal because my employer paid benefits for my domestic partner that are taxed by the federal government but not the state. IvyL.Mo Posts: 1, Reputation: 1 New Member entertainment, news presenter | 4.8K views, 28 likes, 13 loves, 80 comments, 2 shares, Facebook Watch Videos from GBN Grenada Broadcasting Network: GBN News 28th April 2023 Anchor: Kenroy Baptiste. . On one of my W2s box 18 is the same as box 1,3,5,16. Note: Do not make an entry in State Wages, if Different under the State and Local section. Most of these questions focus on understanding the amounts in the numbered boxes on the W-2. Take care, and I wish you continued success, @lauralulu1. Select CA in the State column. This income, covered by a tax treaty is often reported on 1042-S form and the rest of the income is reported as federal wages in box 1. (Ctrl+W if multi-state) enter, 12,000 AR16,000 KY2,000 US.The total will show 30,000.Results: 30,000 will flow to Form 1040, line 7, 12,000 will flow to Arkansas, and 16,000 will flow to KentuckyIn the field, (16) State wages, if different enter31,000 OHResults: 31,000 will flow to the Ohio return. /Font <> By clicking "Continue", you will leave the community and be taken to that site instead. Hand off your taxes, get expert help, or do it yourself. That would get you the right answer for you, as opposed to us just guessing. Residency for Out of State Student Getting Married, State taxes for convoluted NY/NJ work situation. Have a good day! If no box 19 tax then all boxes 18-20 should be blank. But remember, if you are having any trouble completing Step 3, our Live Chat team is available 24/7 to help you. If you have questions about your W2 you need to ask your employer. Why are players required to record the moves in World Championship Classical games? How to add investment income in Sprintax when filing a tax return, J-1 J-1 . Box 18 (Local Wages) shows the wages earned in that particular locale, which could be a county but can also be a city. Remember, you must file your 2022 tax documents before 18 April 2023. Get answers to more of your W-2 questions. Clergy, employees on a work Visa, and some family members of business owners are a few examples. The poster said box 18 *local* wages. 2. The employee didnt receive the extra money on their paycheck, but the value of the fringe benefit or company contribution is included in the W-2 amounts for the appropriate tax calculations. Right away I called AVIS and told them what happened, they said bring the car back. Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 65,000.00 (75,000 - 10,000), Box 5 - Medicare wages and tips: 75,000.00, Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 70,000 (75,000 - 5,000), Box 5 - Medicare wages and tips: 70,000.00, Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 75,000.00, Box 5 - Medicare wages and tips: 80,000.00, Box 1 - Wages, tips, and other compensation (for Federal Income Tax): 50,000.00, Box 5 - Medicare wages and tips: 50,000.00. Hence, the diffierent amounts for salary. What You Need To Know About Your Form W-2 This Tax Season - Forbes Even among the 38% of Americans who . /MediaBox [0 0 612 792] rev2023.5.1.43405. <> You may see boxes 1, 3 and 5 have different amounts and wonder if this is wrong. If you have a client that has employees that are setup in multiple states or localities, the program will combine the state and local wages on the W3. Mine is significantly greater than Box 1 and 16, which makes no sense to me. Live Chat team is available 24/7 to help you. The employee elected to contribute to a retirement plan. States can set their own minimum wages, and so can local governments. If these figures are the same, this is your taxable wage. Two good tools to use to locate the difference: - The Payroll Detail Review report (at Reports | Employees & Payroll) will show you, per employee and per tax, the wage base and the tax for each paycheck, as well as what QB thinks the wage base and tax should be based on your current configuration. Please refer to the UC Berkeley Web Accessibility page if you are having difficulty accessing any of the information and/or content on our websites, or if you have an accessibility related question or comment. CA allows an exclusion from gross income for certain employer-provided benefits for a taxpayer's registered domestic partner and that partner's dependents. Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. Within the Sprintax system, we will give you the opportunity to report your full income to the IRS for the tax year. Get Support. To subscribe to this RSS feed, copy and paste this URL into your RSS reader. So I have an employee who works just over the border in another state. You are a resident of a reciprocal compensation agreement state and your employer withheld PA income tax. Wage and Hour Compliance - Government of New Jersey Ask questions, get answers, and join our large community of Intuit Accountants users. /ProcSet [/PDF /Text /ImageB /ImageC /ImageI] Many States do not allow federal tax treaty agreements and they tax the total income. I was wondering if anyone knows what the minimum wage in Arizona is? Does a password policy with a restriction of repeated characters increase security? Employers must also withhold an additional 0.9% (2.35% total) of Medicare tax on earned income of more than $200,000 in a tax year. I've been trying to confirm if I can get that refunded, since I do not live in Kentucky, but haven't had much luck. There continues to be no limit on the amount of wages subject to the Medicare portion of the tax. Enter 20,000 in the Amount column on the first line. Hello there, @lauralulu1. If you find that after making these adjustments to your Gross Pay YTD per your final pay stub, the result does not match Box 1 Federal Wages and Box 16 State Wages on your W-2, call Central Payroll, 617-495-8500, option 4, for assistance. America's Career InfoNet also has a tool for finding OES wage data by occupation and local area. Thanks for joining the thread. This amount is laso included in box 1. If you have other payroll and W-2 concerns in QBOP, please don't hesitate to comment below. Box 16 (State Wages) shows the wages earned in that particular state? We'll help you get started or pick up where you left off. employer in multiple state, there may be multiple lines of information. At Step 3 of the Sprintax tax prep process, we will ask you about the income you earned during the year. Was just running my W2s and (after much searching, my W3, because again, QBO doesn't think I actually need to see my W3) and saw on my W3 that the state and federal income amounts were different. Does Ohio also allow these amounts to be excluded? The amount reported with code DD is not taxable. Some states will calculate the tax of part-year residents differently, for example, by either taxing the income explicitly earned in the state, or by taxing a fraction of your total annual income based on the amount of time you lived in the state.

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