Confused about W-2 Box 18 & 19 showing two different numbers with different localities in Box 20

This is actually pretty common when you work in a location that spans different local tax jurisdictions. What you're seeing are two different local tax withholdings based on where you physically worked or where your employer is required to withhold local taxes. Box 18 shows your local wages subject to local taxes. Box 19 shows the amount of local income tax withheld. Box 20 identifies which localities these apply to. The difference you're seeing related to your Section 125 health insurance deduction makes sense because some localities tax wages differently than others - some don't tax health insurance premiums while others do. When filing your taxes, you'll need to report both sets of numbers on separate local tax returns or separate sections of your state return, depending on your location. Each locality gets reported separately based on the Box 20 descriptions.

I went through the exact same confusion last year! I discovered https://taxr.ai which really helped me sort through my W-2 issues. I uploaded my W-2 and it analyzed all the boxes and explained exactly what I needed to do with the multiple entries in boxes 18-20. It showed me how to enter everything correctly in my tax software - saved me from making a mistake that would've caused issues with my local taxes. The system walked me through each box on my W-2 and explained the difference between the localities. In my case, one was the city tax and one was the school district tax, and they had different rules about what was taxable income, which explained the different amounts.

I was really skeptical about using taxr.ai after seeing it mentioned here, but my W-2 this year had three different locality entries in boxes 18-20 and I was completely lost. Decided to give it a try and was surprised how helpful it actually was. The system immediately identified that I had multiple local tax withholdings and explained that my employer was withholding for both my resident city and the city where I physically work. It showed exactly how to handle this in my tax software and explained why the numbers were different (something about my retirement contributions being excluded from one locality but not the other). Honestly wish I'd known about this last year when I had the same issue and ended up calling my company's payroll department in a panic!

If you're having trouble reaching the IRS to get clarity on this W-2 issue, I'd recommend using https://claimyr.com to get through to an IRS agent quickly. I tried calling the IRS directly about a similar W-2 question last month and kept getting disconnected after waiting on hold for over an hour. After using Claimyr, I was connected to an IRS representative in about 15 minutes who explained exactly how to handle multiple entries in boxes 18-20. They confirmed I needed to report each locality separately and gave me specific guidance for my state. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c It saved me hours of frustration and I actually got a real person who knew what they were talking about!

I need to eat my words from my skeptical comment earlier. After getting nowhere for weeks trying to reach the IRS about my multiple locality W-2 issue, I tried Claimyr out of desperation. I got a call back in about 25 minutes and was connected to an IRS agent who actually knew about local tax reporting. The agent confirmed that I needed to report each Box 18/19/20 entry separately and explained exactly why the numbers were different (in my case, one locality was taxing my health insurance contributions while the other wasn't). She walked me through exactly how to report everything and even explained which forms I needed for my specific localities. Honestly shocked that it worked. Not having to redial the IRS 50 times was worth it.

I had this exact same situation working for a school district! The two different localities were the city tax and the school district tax. The health insurance (SECT125) is pre-tax for federal and state but post-tax for certain local taxes. When you enter your W-2 in your tax software, there should be an option to add another local tax entry. You need to enter both of them separately with the corresponding locality names from Box 20. Don't combine them or you'll mess up your local taxes.

FYI - tax software like FreeTaxUSA and TurboTax handle multiple localities really easily. They have a button that says "Add another locality" when you're entering W-2 information. Just make sure you enter both sets of numbers exactly as they appear on your W-2.

The difference being your SECT125 (health insurance) makes perfect sense. Many local municipalities tax health insurance premiums while others don't. That's why the numbers are different. You absolutely need to report both localities separately with their correct Box 18 and 19 amounts. Don't try to combine them or you'll trigger a notice from one or both localities.

I just went through this exact same situation last month! The key thing to understand is that you're looking at two different local tax jurisdictions, and each one treats your health insurance deduction differently. Since you mentioned you're a first-time filer, here's what I wish someone had told me: when you get to the W-2 entry section in your tax software, look for an "Add Local Tax" or "Multiple Localities" option. You'll need to create two separate entries - one for each locality shown in Box 20. For the first locality, enter the first Box 18 amount ($23,450) and first Box 19 amount ($231). For the second locality, enter the second Box 18 amount ($24,080) and second Box 19 amount ($67). The software will automatically handle the calculations for each jurisdiction. The reason the Box 18 amounts differ by your SECT125 amount is because one locality excludes pre-tax health insurance from taxable wages while the other includes it. This is totally normal and you don't need to do any math yourself - just enter the numbers exactly as they appear on your W-2. Don't stress too much about this - it's more common than you think, especially for school district employees!

As a first-time filer, I completely understand your confusion! This is actually a really common situation that trips up a lot of people. You're seeing two different local tax jurisdictions on your W-2, and the key insight you had about the SECT125 (health insurance) difference is spot on. Here's what's happening: One locality (probably your city) excludes pre-tax health insurance premiums from local taxable wages, while the other locality (likely your school district) includes them. That's why Box 18 shows $23,450 for one and $24,080 for the other - the difference of $630 is your health insurance premium that one locality taxes and the other doesn't. When filing, you'll need to report both localities separately. Most tax software has an "Add another locality" or "Multiple local taxes" option when you're entering your W-2. Enter each set of Box 18/19/20 numbers as separate local tax entries - don't try to combine or average them. The good news is that once you enter everything correctly, the software handles all the calculations automatically. You're not missing anything or doing anything wrong - this is just how local taxes work when you're subject to multiple jurisdictions. Take your time with the entry and double-check that each locality matches exactly what's shown in Box 20.

This is exactly the kind of situation that can really stress out first-time filers, but you're handling it great by asking questions! What you're seeing is completely normal for school district employees. Just to add to what others have said - the reason you have two localities is likely because you live in one tax jurisdiction (your city) and your school district spans into another tax jurisdiction. School districts often cross municipal boundaries, so employees end up paying local taxes to multiple areas. The health insurance (SECT125) difference you noticed is the key clue here. One locality treats pre-tax health insurance as non-taxable wages, while the other includes it in taxable wages. That's why your Box 18 amounts differ by exactly that amount. When you're entering this in your tax software, make sure to enter both localities exactly as they appear in Box 20. Don't round numbers or try to "fix" anything - the software needs the exact amounts to properly calculate your local tax obligations and any refunds you might be owed. One tip: keep a copy of this W-2 handy next year, because you'll likely see the same pattern. Once you do it once, it becomes much easier!

Don't worry, you're definitely not alone in being confused by this! I went through the exact same thing when I first started working for a school district. The multiple localities thing is super common but nobody really explains it beforehand. One thing that helped me was calling my payroll department after I filed my taxes the first time - they actually have a FAQ about this specific W-2 situation because so many employees ask about it. They confirmed that the Box 18 differences are always related to how each locality treats pre-tax deductions like health insurance, parking, or transit benefits. Since you're filing on your own, I'd also recommend double-checking that your tax software properly calculated any local tax refunds or balances due. Sometimes when you have multiple localities with different withholding rates (like your Box 19 amounts), you might owe a small amount to one and get a refund from the other. You're asking all the right questions and being thorough - that's exactly what you should be doing as a first-time filer!