Discussion:Hawaii W-2 has local wages & Withholding

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Hawaii User Group --> Hawaii W-2 has local wages & Withholding


Joan TB (talk|edits) said:

5 October 2009
I am a Texas CPA, but my grown son moved to Hawaii. (The two granddaughters give me a great reason to visit!)

Anyway, I am trying to finish up his 2008 tax returns, and Lacerte prepared the federal & state. However, his form W-2 shows local wages, local withholding and "locality name" of TDI23 (or TD123 - can't tell if this is number 1 or letter I). This wasn't on his W-2 last year, and I am having trouble finding out what return I may need to file for this. So I thought I would ask the Hawaii User group to see if you can point me in the right direction for information on the web.

Thanks for the help.

Natalie (talk|edits) said:

October 6, 2009
There are no local income taxes in Hawaii. The "TDI" looks like it is withholding for temporary disability insurance. Hawaii allows employers to deduct up to .5% of weekly wages. There are certain other requirements that must be met to withhold for this insurance, including written consent from the employee.

In general, I recommend to my clients that they not take deductions for TDI because the administrative costs of actually doing it usually out-weigh the amounts received.

Joan TB (talk|edits) said:

6 October 2009
Natalie - thanks so much for the reply.

Joan TB

Natalie (talk|edits) said:

October 6, 2009
You're welcome.

To join in on this discussion, you must first log in.
Personal tools