Other Common Business Deductions

[ottokess]

Can I deduct Federal Income tax withheld (box 2) in Taxes and Licenses section in Other Common Business Expenses??

[VolvoGirl]

For W2 box 2?  For people you paid or for your own W2?  Not for your own withholding.  

[ottokess]

It comes on XYO w2 form.  It would include me, my wife (filing jointly) and one other employee

[VolvoGirl]

You can't deduct your own or wife's W2 box 2 as a business deduction on Schedule C.  If you pay an employee that is part of the gross wages on line 26.  Are you asking about Schedule C in your personal return?  Or a separate Business return?  Is XYO your own company?  Are yours and hers W2 from other jobs and employers?  Because you can't pay yourself or issue a W2 to yourself from self employment on Schedule C.