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Deductions & credits
State (or Federal) tax is not deducted from wages in W-2 Box 1. Rather, it is applied as a credit against any taxes you owe on that income. The SC tax withheld will be recorded when you enter the entire W-2 in Federal > Wages and Income > Wages. It will then carry over to your State return.
‎February 3, 2022
8:43 AM