Sch IN-W: Line 26-Total St Tax W/D total Indiana local income tax withheld doesn't match with Indiana local withholding entered on your Federal return.

[darkrain0314]

I've imported my W-2's, and some of my W-2's have empty box 18,19,20. On one W-2 State income is different than Local income. I'm not sure what I'm supposed to change.

[JamesG1]

Recommend that you review the entries for lines 15 through 20 of the W-2 and enter them by hand to make sure that they are correct.

Most Indiana W-2's will have at least two lines of information for lines 15 through 20 of the W-2.

One line reports state income tax.  Hopefully, box 16 for this line will equal the value in boxes 1 and 3 and 5.

A second line reports county income tax.  This line will report a county name or county number (1 through 92) in box 20.

Box 16 for this line may not be the same as box 16 of the state income tax.  Your employer may have reported county income towards more than one Indiana county.  There can be multiple county lines.

It becomes much more complicated if other state income is reported on your W-2.

[darkrain0314]

I was looking at one of my W-2's, and I have two locality codes. I work in a different county than I live. When I look at the IN-W it does not show both locality codes, and I think that is the problem. How can I show both locale codes from the W-2 on the IN-W? That would cause a match issue if it's only using one of the two listed. Should I contact Turbo Tax to see if maybe it's an issue on their end? I have entered the W-2 by hand, and is how I've seen the two differing locality codes. Thank you for your response.

[Cynthiad66]

@darkrain0314 

First,  you stated some of your W-2s show local taxes.   There are jurisdictions that collect local income taxes.  Some locations may not have local taxes.  That would be based on the location where you work. 

Also, It  sounds like one of your W-2s is showing withholdings from only one locality.  If that is the case, then most likely, the W-2 is correct, unless you worked in multiple locations for that employer.  When you prepare your return, using TurboTax, the return will capture your residence vs where you worked and compute the taxes accordingly.  Normally, local taxes would be withheld from one location unless you work in multiple locations, for that employer.  The dilemma, as I see it, is that if you change the W-2 to show two locality codes and the withholding was actually for one location that could create an error.  If I am misinterpreting your situation, please clarify.