Hello. I had a question about whether local taxes are to be paid on contributions to a non qualified deferred compensation plan in the year that the contributions are made. I am in Ohio. The W2 does show include the total wages before contributions were made in box 5 (medicare) and local wages (box 18).
(1) Is paying local tax on the total wages (which includes the wages that were deferred) apropriate?
(2) When the payments/distributions are eventually made to me in the future from the plan, then the payment/distribution amount (which may include gains or losses) from the plan would only be taxed on a Federal and State level?
It depends on the tax code of the local jurisdiction. You may wish to inquire at the local taxing agency to see if this is appropriate for both instances that you describe.
Local taxes and taxing jurisdictions are complex because each jurisdiction has it's own caveats and turbo Tax does not have any particular knowledge about the tax codes in each jurisdiction.
It depends on the tax code of the local jurisdiction. You may wish to inquire at the local taxing agency to see if this is appropriate for both instances that you describe.
Local taxes and taxing jurisdictions are complex because each jurisdiction has it's own caveats and turbo Tax does not have any particular knowledge about the tax codes in each jurisdiction.