This diagnostic is informational only and won't prevent the return from being transmitted electronically. However, the state may return a rejected status, in which case the return will need to be paper filed.
This article will help to clear the following informational e-file diagnostic:
- Form W-2: State wage, tips override (W-2 Box 16) results in the state income tax withholding (W-2 box 17) being greater than 1/2 of the state wages in W-2 box 16. (ref. #4992)
To clear the diagnostic:
- Go to Input Return ⮕ Income ⮕ Wages, Salaries, Tips.
- A W-2 is entered with state withholding exceeding 1/2 of the wages sourced to the state.
- Make sure these entries are correct and sourced to the correct state.
- Income, Box 1
- Withholding, Box 17
