I am a little bit confused about local taxes and school taxes. My local income tax was taken out of my pay for the 2006 year and reported in box #19 on my W-2 in the amount of 293.75. The school tax liability is .75% and the local is .50%. Where I get confused is here:
On both forms it states something along these lines.."For taxpayers who's local taxes where withheld by your employer enter the amount listed on your W-2. However, the amount withheld must be equal to or lesser than the tax liability amount. Do not enter a larger #. Ok, this makes sense..on both forms the tax liability amount was less than the total 293.75 therefore I put the equal amount as per the directions. School form it was 220.31, and on the local it was 146.88. What I really need to know, if I am suppossed to use the amount in box #19 for both forms....then why don't the tax liability amounts add up to 293.75 or does that matter? Sorry but this is my first time on these!!!
2007-04-11
12:01:18
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1 answers
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lost in Indiana
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Business & Finance
➔ Taxes
➔ United States