Reject Code: W2-004-01
IRSW2 line 20, W2LocalTaxGrp.LocalityNm is required if the W2StateTaxGrp.StateAbbreviationCd is IN and W2LocalTaxGrp.LocalIncomeTaxAmt is greater than zero. (See publication for list of valid locality codes)
An Indiana return will reject with code W2-004-01 if Indiana is specified on the W-2 state line and an amount has been entered in the locality tax field but the 2-digit county code is missing. If locality tax has been withheld, the 2-digit county code must also be entered.
To fix this reject, for each W-2 with Indiana locality information, ensure only a 2-digit county code has been entered in the locality field. After correcting the W-2(s), reopen the Indiana tax return for the change to flow in.
A list of county codes is available with the instructions for Indiana Schedule CT-40, Schedule CT-40PNR, or Form IT-40RNR.
Additional Information: