Other State Withholding is used to report state income tax withholding that can't be entered anywhere else in the program.
In most cases, state withholding should be reported directly on the tax form where it appears. However, you may need to use Other State Withholding if:
- You received a Form 1099-B and have an amount reported in Box 16.
- You have state withholding reported on a 1099 form that does not provide a place to enter the withholding amount, and the amount cannot be entered in the state section of the program.
How Does Other State Withholding Affect My Refund?
Generally, you should only enter an amount here if the state withholding isn't already reported elsewhere on your return.
If you enter withholding that has already been reported on another form, the program may count the withholding twice. This can cause your state tax return calculations to be incorrect.
An incorrect withholding entry may:
- Increase or decrease your calculated refund incorrectly.
- Cause your state return to be adjusted during processing.
- Delay your state refund.
- Result in additional correspondence from your state tax agency.
Before You Enter Other State Withholding
Double-check your tax forms to make sure the withholding hasn't already been entered in the program. In most cases, state withholding is automatically included when you enter the form that reports it.
Only use Other State Withholding when the withholding amount cannot be reported anywhere else in the program. Doing so helps ensure your state return is accurate and reduces the chance of refund delays or adjustments.