SUBJECT: Use of Federal Form W-2 for Reporting Indiana State and County Taxes Withheld

REFERENCES: IC 6-3-4-8

DISCLAIMER: Information bulletins are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules, and court decisions. Any information that is not consistent with the law, regulations, or court decisions is not binding on either the department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.

SUMMARY OF CHANGES

Only nonsubstantive, technical changes have made to this bulletin. It has been primarily changed to reflect updated formatting.

INTRODUCTION

The purpose of this bulletin is to provide employers with the necessary information to correctly indicate Indiana adjusted gross income tax withheld, and county income tax withheld on the State copy of Federal Form W-2, Wage and Tax Statement.

EMPLOYER'S STATEMENT TO EMPLOYEES

Every employer who has withheld tax from income paid or credited to any taxpayer is required to provide the taxpayer with a statement of the amount of income paid or credited to the taxpayer and the amount of tax withheld for them, during the calendar year. For both Indiana state and county tax purposes, the W-2 form should be used for Indiana withholding purposes.

COMPLETING THE STATE COPY OF FORM W-2 FOR STATE AND COUNTY TAX WITHHOLDING

All Indiana state income tax withheld by an employer must be designated in the appropriate boxes of the state copy of the W-2 form. For purposes of identifying Indiana state income tax withheld, the abbreviation IN must be shown in box 15 of the W-2 form. State income tax information should be reported in boxes 16 and 17 of the W-2 form. Box 16 should report the amount of wages subject to Indiana income tax. Box 17 should report the amount of Indiana income tax withheld.

All Indiana county income taxes withheld by an employer must be designated in the appropriate boxes of state copy of the W-2 form. To identify county tax withheld for the tax year, enter C and the adopting county code in box 20.

County income tax information should be reported in boxes 18 and 19. Box 18 should report the amount of wages subject to county income tax. Box 19 should report the amount of county income tax withheld.

COUNTY CODE LISTINGS

Please refer to Income Tax Information Bulletin #32 for additional information concerning state and county taxes, available online at in.gov/dor/legal-resources/tax-library/information-bulletins/income-tax-information-bulletins/.

If you have any questions concerning this bulletin, please contact the Tax Policy Division at taxpolicy@dor.in.gov.

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Robert J. Grennes, Jr.

Commissioner