W2 Box 19 in WASHINGTON STATE

[Adriana01]

Turbo Tax is not letting me e-file because Box 19 (Local Income Tax) is higher than 1/2 of Box 18 (Local wages, tips, etc.).  

Box 19 = $212.82 

Box 18 = 0 

Box 20 (Locality name) = WA L&I  

What should I do? 

[RaifH]

Rather than report this information in the local section, I would move it to Box 14 of your W-2. Use WA L&I as the description, enter the amount, and for category select Other (not classified) from the pulldown menu. This is the amount you pay into the state workers' compensation fund. It will not have any impact on your taxes.

You can then click the trashcan next to the local information in Boxes 18-20 to get rid of it. 

[Adriana01]

Also, please note Washington state is a No Income Tax state.   Should I still move amount to Box 14? Not sure why employer withheld income taxes. 

[RaifH]

Yes, Box 14 is the miscellaneous information section of your W-2. It's basically the junk drawer. The L&I is reported for your information and does not have any bearing on your federal taxes. 

Boxes 15-17 are used for the state taxes. As you said, since Washington is a no income tax state, you should have no information reported there. The worker's compensation fund has to be paid in by most employers. It's not an income tax, so they can get away with charging it, even in Washington.