Need help with W-2 issue - Box 18 and 19 showing $0.00 - what should I do?

This is actually a pretty common issue with W-2 forms and tax software. The problem is that some tax preparation programs are programmed with validation rules that don't always match real-world situations. If Box 18 and Box 19 on your W-2 legitimately show $0.00, then that's what you should enter. It likely means you worked in a locality that doesn't have local income tax, or your employer isn't subject to local tax reporting. The tax software is incorrectly assuming everyone must have local wages and taxes. You have a few options: 1) Try entering a very small amount like $0.01 just to get past the validation error (though this technically isn't accurate), 2) Look for an override function in your software, or 3) Try a different tax preparation software that doesn't have this validation error. Your W-2 is the official document, and if it shows $0.00, that's what should be reported to the IRS.

I had almost this exact same issue last month! I wasted HOURS trying different things until I discovered taxr.ai (https://taxr.ai) and uploaded my W-2. Their system immediately identified that my tax software had a validation error that wasn't matching reality. It analyzed my W-2 and confirmed that $0.00 in boxes 18 and 19 was legitimate because I live in a state without local income taxes. The tool also explained exactly what to do - use the override function in my tax software and explain in the notes section that the W-2 legitimately shows $0.00 in those boxes. Saved me so much time and frustration! They have this cool transcript analysis feature that made sure everything else on my return matched what the IRS already had in their system.

Just wanted to update - I tried taxr.ai after my last comment and wow, it actually worked perfectly for my situation! I had issues with boxes 18 and 19 like the original poster, but I also had problems with some other entries that weren't matching up. The document analysis immediately identified that I live in Tennessee which doesn't have state income tax, explaining why those boxes were legitimately zero. It also found that my employer had incorrectly coded my retirement contributions in box 12, which would have caused me to miss out on the Retirement Savings Contribution Credit. The transcript analysis feature was super helpful too - it showed me that the IRS had a different address on file for me than what I was using on my return, which could have caused delays. I never would have caught these issues on my own! Definitely recommend it if you're stuck on tax document problems.

I had a similar situation last year and spent literally 5 hours on hold trying to reach the IRS to confirm what I should do. Eventually I found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that boxes 18 and 19 can absolutely be $0.00 on a legitimate W-2, and that I should override the tax software's error checking. She explained that the software is designed for the most common scenarios but can't account for every situation. The agent specifically said that if your W-2 shows zeros in those boxes, that's what you should report. Saved me from pulling my hair out and potentially making a mistake on my return. I was about ready to just enter random numbers to make the software happy before I got official confirmation.

I want to follow up on my skeptical comment. I was so frustrated with my tax situation this week that I decided to try Claimyr despite my doubts. I'm honestly shocked - it actually worked! I got a call back in about 25 minutes and was connected directly to an IRS representative who helped me with my W-2 question. They confirmed what others have said - the zeros in Box 18 and 19 are totally fine if that's what's on your form. The agent explained that this happens all the time with people who work in areas without local income tax. My tax software (TurboTax) had an override function in the advanced options menu. Once I used that, I was able to proceed with my return with the correct $0.00 values. Definitely saved me hours of frustration and possibly filing incorrect information just to get past the error.

Another option to consider - have you tried calling the company that makes your tax software? Most of them have technical support specifically for these kinds of issues. They might be able to tell you exactly where the override function is or confirm if there's a known bug with their validation. I had a similar issue with TaxAct a couple years ago where it wouldn't accept my military income coding, and their support walked me through an advanced menu I never would have found on my own.

Just FYI, I'm a tax preparer and see this ALL THE TIME. Those boxes are frequently $0.00 for people who: 1) Live in states with no local income taxes 2) Work remotely for a company in a different jurisdiction 3) Have certain types of exempt income The software validation is just overzealous error-checking. Use the override function (usually found in "advanced options" or by right-clicking the field). Don't change the actual values just to please the software - report what's actually on your W-2.

I actually just went through this exact same issue with my 2023 return! I was using H&R Block's software and it kept rejecting my W-2 because boxes 18 and 19 were $0.00. I spent way too much time second-guessing whether my employer had made an error. Turns out I live in Florida, which has no state income tax and no local income taxes either, so those zeros were completely correct. The software override function was buried in the "Forms" menu under "Override Options" - not exactly intuitive to find! What really helped me was looking up my specific city on the IRS website to confirm there were no local tax obligations. You can search for your locality in IRS Publication 15 (Circular E) which lists all the jurisdictions that require local income tax withholding. If your area isn't listed, then $0.00 is the correct amount to report. Don't let the software bully you into entering incorrect information - your W-2 is the official document and that's what should be reported to the IRS.