W2 form box 16 (state income) meaning
Box 16: State wages, tips, etc. – This amount represents the total of taxable wages earned in that state. Box 17: State Income tax – This amount represents the total of state income taxes withheld from your paycheck for the wages reported in Box 16.
What does Box 16 mean on my w2?
of taxable wages
Box 16: Box 16 reports the total amount of taxable wages you earned in that state. There may be multiple lines of information here, too, if you worked for the same employer in multiple states. Box 17: Box 17 reports the total amount of state income taxes withheld from your paychecks for the wages reported in Box 16.
What is the difference between state and local wages?
State income tax: The total state income taxes that were withheld from your compensation. Local wages, tips, etc: The total local taxable gross pay you received. Local income tax: The total local income tax withheld from your compensation.
Is Box 16 and 18 the same?
Those boxes represent your wage base for taxes. Box 1 is wages for federal taxes, Box 3 is wages for SS tax, Box 5 is wages for Medicare tax, Box 16 is wages for state income tax, and Box 18 is wage base for local taxes.
Where do I find my gross income?
You simply add up all of your income sources before any tax deductions or taxes. For example, if last year you earned $100,000 in salary, $1,000 in interest income, and $12,000 in rental income, your gross income for the year would be $100,000 + $1,000 + $12,000 = $113,000.
What are state wages on W-2?
Box 16: State wages, tips, etc.
– This amount represents the total of taxable wages earned in that state. Box 17: State Income tax – This amount represents the total of state income taxes withheld from your paycheck for the wages reported in Box 16.
What does total state mean on my W-2?
If you do not have a state abbreviation in box 15 , or any entries in box 16 or 17, you may leave the “total state” portion of box 15 empty, as well. Generally, box 15 will have the state abbreviation and state ID for the employer, so the amounts in box 16 and 17 can be accounted for properly on the state return.
Why is my federal and state income difference?
The most common questions relate to why W-2 Wages differ from your final pay stub for the year, and why Federal and State Wages per your W-2 differ from Social Security and Medicare Wages per the W-2. The short answer is that the differences relate to what wage amounts are taxable in each case.
Are federal and state wages the same?
Usually, the difference relates to what wage amounts are taxable in each case. 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.
What is state income tax used for?
State governments use taxpayer dollars to fund road maintenance, law enforcement agencies and other public services. The funding for those services typically comes from three key areas: property taxes, sales taxes and income taxes.
What box on my W-2 is my gross income?
Your gross income stated in Box 1 of your W-2 is essential in filing your taxes, as it shows your wages subject to federal income tax. Boxes 3 and 5 of the W-2 show your gross income that is subject to Social Security and Medicare taxes.
Does my W-2 show my gross income?
Your annual income as reported on your Form W-2 is called “Taxable Gross Income.” Your income will be less than your salary if you have pre-tax deductions for a 403(b) or other deferred compensation plan, or if you have pre-tax deductions for your elected benefits, such as health and dental insurance.
Where do I find my gross income on my W-2?
Gross wages are the amount a company pays an employee before any deductions are withheld. On a W-2 tax statement, an employee’s federal taxable gross wages appear in Box 1, which is located near the top-center of the form.