It says i cannot e-file because my state withholding was more than 50% of wages. Is this the case even if we are filing jointly?

Forum|Forum|6 years ago
June 5, 2019
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TurboTax Premier Online

Best answer by ToddL

Yes, when your state or local withholding exceeds a certain percentage of the state or local wages, you won't be able to e-file your return.

This is a measure taken to prevent individuals from claiming more state/local withholding on an e-filed return than what was actually withheld. This gives the state an opportunity to confirm the amounts withheld from a physical copy of the Form W-2, rather than accepting what you manually entered in an e-filed return.

ToddLAnswer

Employee

Yes, when your state or local withholding exceeds a certain percentage of the state or local wages, you won't be able to e-file your return.

mja400usa

Frankly, this makes no sense. I had this same problem. My withholding was on a W2 statement which both the IRS and Minnesota can access. In fact it is more time-consuming for them both to deal with paper forms.

Is this a screwy federal or Minnesota requirement? If so, I would like to know where I can read through this requirement! When I called into Turbotax support, I was promised I would get an email with a list of reasons why electronic submission was not allowed. I still do not have such an email!

SusanY1

The stop on e-filing in this case comes from the IRS e-file system.

Certain anomalies with W-2s require the written form for additional verification.

There is a significant delay in the ability of the IRS systems to match data from employers with data on tax returns which may have something to with why this is the case, though that is merely speculation.

What we do know is that this is a situation which cannot be overridden since the reject comes from the IRS.

@mja400usa

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