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Question: Why is there an amount in Box 14 on my Form W-2? Answer: Box 14 data was added for informational purposes and represents the total amount of Local Services Tax, Occupational Privilege Tax, Taxable Vehicle, Imputed Income for Flexible Spending Account (FSA) and/or Health Reimbursement Arrangement (HRA).
Employers send the money that they deduct for taxes to the federal government, and, in many cases, to the state government as well. The government uses this tax revenue to provide public goods and services for the benefit of the community as a whole.
Box 18, 19 and 20: Local Wages, Local Income Tax and Locality Name These boxes apply to out-of-state employees only, whose tax residency states collect local income taxes.
Another way to determine locally taxable wages, if there is no wage amount in the local wage box, is to begin with box 1 (Federal wages), then add any 12D reported in box 12 and subtract any 12C reported in box 12.
17 State Income Tax: The total state income taxes that were withheld from your compensation. 18 Local Wages, Tips, Etc.: The total local taxable gross pay you received. 19 Local Income Tax: The total local income tax withheld from your compensation.

People also ask

The most common questions relate to why W-2 Wages differ from your final pay stub for the year, and why Federal and State Wages per your W-2 differ from Social Security and Medicare Wages per the W-2. The short answer is that the differences relate to what wage amounts are taxable in each case.
The State wage amount reported in Box 16 for New Jersey consists of gross wages paid during calendar 2023 plus imputed income. Unlike Federal wages, this amount is not reduced by salary reductions for pretax health insurance coverage, flexible spending account contributions, and retirement plan contributions.

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