2

I moved midyear from one state to another. I need to pay local income tax in my new city/state, something I did not need to do before. My W-2 shows my state income broken up between the two states in box 16. These add up to the total income shown in box 1, which is expected. However, the local income reported in box 18 is signifcantly more than the second state income (the state I moved to) in box 16. I would have expected these two numbers to match since I lived in this city for the exact same amount of time as I lived in this state.

Should these two numbers match?

My new city/state is Columbus, OH.

  • 2
    Local income tax policies vary by city and state, can you provide those? – Hart CO Apr 14 '17 at 15:02
  • 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. The difference can be significant if you get a substantial raise or reduction. Perhaps the locality and state treat part-year residents differently. I'd say I'd be surprised if the locality didn't conform to the state, but there's not much that surprises me with regards to tax codes these days... – pwcnorthrop Apr 14 '17 at 17:51
3

My 401(k) contributions were being withheld/taxed at the local level, but not at the state level.

  • Could you expand on this a bit? I can guess this is something to do with 401k being treated differently for local and state taxes, but I'm not sure exactly how. – Ganesh Sittampalam Apr 17 '17 at 15:25

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.