Trying to efile but Turbotax will not let me because of SC tax paid greater than the SC tax income made. Looking for work around

Forum|Forum|11 months ago
April 13, 2025
1 reply
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While working in OH last year the payroll company also taxed me in my home state of SC. Since travel days were the only work considered as SC income my resulting W-2 has my SC income at 1/3 of the income tax paid to SC. Because of this Turbo Tax is telling me I have to file by mail, but since I have to file in 5 states and also file a Sch C, I would prefer not to mail in my returns. Does anyone know a work around to allow me to efile?

I have double checked this against my pay stubs and this info is correct.

Thanks!

Screenshot 2025-04-13 at 6.53.15 PM.png

JohnB5677

This screenshot clearly show the SC income is 3 times less than the tax withheld.

TurboTax has correctly flagged this condition, and it has to be an error.
First double check the posting of the W-2.

Log into TurboTax.

Under Federal
Click Wages & Income a menu will appear.
Select Job (W-2)
[Add/Edit]
You will see your W-2 posted earlier
Select [+ Add a new W-2]
Follow the interview to post the new W-2

On the SC W-2, are the wages in Box 1 greater than in box 16?

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reyn0ldsjAuthor

As I stated in my original post. I checked these numbers against my paystubs so it is not an error.

The wages in box 1 are higher than the wages in the SC part of box 16. But the wages in box 1 minus travel days were taxed as Ohio income in a separate box 16 for OH not SC. In hind sight I should have stopped the payroll company from taking the SC taxes out.

The w2 is correct. Just looking for a work around so I can efile.

mglauner

I would recommend you delete this W-2 and re-enter it. If you're using TurboTax Online, clear your Cache and Cookies after deleting, before re-entering.

Actually, it's a common situation where Box 1 total wages are earned in multiple states. If the W-2 breaks out the Income/Tax Paid correctly, then there's no problem just entering what is on the W-2 as issued.

In your case, if you have wages in Box 16 for South Carolina, and a second line of Box 16 reports wages in Ohio, the two wages should total Box 1.

Box 15 should have the state, Box 16 State Wages, Box 17 State Tax. Use the 'Add State' link to add as many states as you need to. Remember that all your income is reported to your Resident State of SC, and you get a credit for tax paid to another state. TurboTax does the calculations for you. Prepare your Non-Resident return first.

Here's more info on How to File a Non-Resident State Return

@reyn0ldsj