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Returning Member
posted Feb 3, 2022 8:33:56 AM

State Tax withheld on W2

On my w2 there is an amount for what was withheld for SC income tax. Is this amount auto deducted from the total income in Box 1 for the federal taxable income or so I need to input as an itemized deduction and if so where?

0 4 1369
4 Replies
Level 15
Feb 3, 2022 8:43:08 AM

State (or Federal) tax is not deducted from wages in W-2 Box 1. Rather, it is applied as a credit against any taxes you owe on that income.  The SC tax withheld will be recorded when you enter the entire W-2 in Federal > Wages and Income > Wages. It will then carry over to your State return.

Returning Member
Feb 3, 2022 8:49:54 AM

So I do not put in as an itemized deduction?

Expert Alumni
Feb 3, 2022 9:08:12 AM

No, if you are itemizing, TurboTax will automatically pull in the state and local taxes you entered on your W-2's to your itemized deduction.

Returning Member
Feb 3, 2022 9:10:23 AM

ok thank you