topic My local wages seem much higher than they should be. I did withdraw from my 401k this year. Is that included in box 16 local wages on w2? I received a 1099 R. in Get your taxes done using TurboTax

My local wages seem much higher than they should be. I did withdraw from my 401k this year. Is that included in box 16 local wages on w2? I received a 1099 R.

Maldj37 — Wed, 05 Feb 2020 13:02:19 GMT

Re: My local wages seem much higher than they should be. I did withdraw from my 401k this year. I...

JosephF8 — Wed, 05 Feb 2020 15:14:01 GMT

Withdrawals from your 401k will be reported on the 1099-R that you received.

Depending on the state that you live in, there are a number of items that are excluded from your federal income (box 1)

Some examples are:

Contributions to a retirement plan
Deductions for health insurance
Deductions for a Health Savings Account (HSA)

In this way your State wages (box 16) can be greater than box 1

Re: My local wages seem much higher than they should be. I did withdraw from my 401k this year. I...

Maldj37 — Wed, 05 Feb 2020 16:43:31 GMT

But does my 401k withdraw impact line 16 on my W-2? I understand contributions do, I also understand my 1099 R. I don't understand why my local wages are so high, they exceed my contributions greatly.

Thanks!

Re: My local wages seem much higher than they should be. I did withdraw from my 401k this year. I...

MayaD — Wed, 05 Feb 2020 17:00:36 GMT

No, your 401K withdrawal is not included in box 16. Box 16 reports the total amount of taxable wages earned in that state. Your 401K distribution will be reported on your 1099-R form and will be added to your Wages and other income on your 1040 form.

If Retirement contributions are subject to state income tax, Box 16 may be higher than Box 1.

You can contact your employer to make sure the amount in box 16 is correct.