I don't want to add a number to box 18 which will not match the W2 version sent to the IRS
To resolve this error, populate box 18 with the information in Box 1 (or Box 16 if different). Some issuers of Form W-2 only put a figure in this box when it differs from the Box 1 figure. If there is no number, the Box 1 (or 16) number can be used here.
It will not cause any issues related to "not matching" the W-2 data as the data sent to the IRS doesn't include the state and the data sent to the state will be populated with the Box 1 number when there are no state adjustments.
@Jtc6
@mkopack73
If box 19 Local Income Tax has an amount then put the amount from box 1 into box 18 for Local Wages.
Hi I don't like that answer because I don't want to modify my W2 Box 18 entry to make it different than the W2 sent to the IRS and get audited because they don't match. This is a software bug in this year's Turbo tax, wouldn't you agree? Thank you ahead time for continuing to look into this issue that will affect everyone in NJ at least
Hey I just want to apologize for my response and, I thought you were responding for Turbo tax, and i'm just very frustrated that I was so close to to being done with taxes and now Turbo Tax wants me to pay the $159 upgrade fee for them to tell me the work around to something that has never been a problem for 30 years
I'm having the same problem! Never has been an issue before, but this year it's flagging it. I can't complete without it.
Box 18 is blank, Box 19 and 20 have data in them.
What gives???
I’m having the same problem. Went back to look at last years W2 and box 18 was blank and box 19-20 had amount/locality. Had no issues submitting last year through Turbo Tax. Has anyone found a solution?
To resolve this error, populate box 18 with the information in Box 1 (or Box 16 if different). Some issuers of Form W-2 only put a figure in this box when it differs from the Box 1 figure. If there is no number, the Box 1 (or 16) number can be used here.
It will not cause any issues related to "not matching" the W-2 data as the data sent to the IRS doesn't include the state and the data sent to the state will be populated with the Box 1 number when there are no state adjustments.
@Jtc6
@mkopack73
Why use Box 1 instead of Box16 which is the State Wages? This really needs to get fixed, I have never seen a box 18 entry in NJ associated with UI/WF/SWF or FLI
Sure, if you have a different amount in box 16 than box 1 you can put box 16 into box 18.
Box 16 was my first thought, but i went with box 1 based on answers here
Why don't you fix this in the software. just like the others i have never seen an entry in my W2 in box 18 and always had data in 19 and 20. I also don't like the thought of modifying my W-2 entry. This will likely make me switch to a different SW next season. Definitely not acceptable.
An entry is necessary in this box for TurboTax because there may be multiple localities that divide the income or adjustments per locality rules, and the software can't automatically assume the entry is the same as another box item. It requires the customer to determine the appropriate value.
When there's no entry on the W-2 Box 18, and only one locality reporting local wages and tax, use the entry in Box 16 (state wages) to populate this question in TurboTax.
@dadjohnson39
Has anyone filed their taxes using this strategy and been audited or had any issues with this answer? I was told the same on the phone from turbotax and am concerned about it.
This year I populated box 18 with the information in Box 1 based on SusanY1's advice. Both the Feds and NJ "accepted" my return. That's all I can say
I too checked back thru 8 yrs of returns. NJ W2 has always been same. Nothing in Box 18; 2 amounts in Box 19. TT never flagged it until this year. I see the expert response to populate Box 18 w/ either Box 1 or Box 16, and the explanation. however, i still wonder if this is a TT bug that should be looked at - I work for one of the largest companies in US. There must be thousands of EE's all having this 'new' problem in 2025 TT version.
I am in the same situation, box 18 is empty but boxes 1 and 16 have different amounts. To confirm, I should enter the amount in box 16? I am in NJ.
If there is a dollar amount in Box 19, Local Income Tax, TurboTax will expect there to be an amount in Box 18, Local wages, tips, etc. There should also be an entry in Box 20, Locality name. If your employer left Box 18 blank, and all of your income was earned in the same locality, then the amount from Box 1 / Box 16 would normally be repeated in Box 18. If you have a question as to how your Local Income Tax was determined, ask your employer or payroll office. If there is an error, they may need to issue you a corrected W-2.
If you have local taxes, you may have wages that are taxable by more than one locality (such as a city or school district). You can add another line for Boxes 18 through 20 by clicking the "+Add another locality" button that appears below Boxes 18 through 20.
See this TurboTax tips article for more information about Form W-2.
See this help article for more information about city taxes supported by TurboTax.
Last year, I had the same situation on my W2 and this issue did not come up then. How can that be?
tax128
The state wages (box 16) is often different from box 1 (federal wages) because NJ does not allow some of the exclusions that are allowed on the federal return. For example, NJ does not allow HSA contributions, most retirement plan contributions (except for a 401(k), and most Section 125 cafeteria plan exclusions.
Box 18 would have an entry if your employer withheld for a city tax in New Jersey - did that happen?
As for how it is possible for you to get different messages for different years, the error checks can be updated from year to year, depending on the need.