It appears it is something to do with Turbo Tax.
The sum of all forms W-2s "WagesAmt" must not be greater than the sum of ["WagesSalariesandTipsAmt in the return and (sum of all Schedule C (Form 1040), 'TotalGrossReceiptsAmt' when 'StatutoryEmployeefromW2Ind' is checked)] unless form 8958 or form 8839 is present in the return. When evaluating this, a tolerance of $5.00 is allowed.
This return cannot be electronically filed due to a processing error related to the Other Income items listed on 1040 Schedule 1 Line 8.
The issue will be resolved, but there is currently no estimated date for when the update will be available. You have two options:
1) You may wait a few weeks and attempt to resubmit this return, or
2) You may print and file the return by mail.
This message will be updated when a resolution date is identified.
So now I wait. No explanation as to what happens if I print and file the return by mail - assuming the IRS may still reject it after I paid Intuit for the software and the state submission.
Add to this that I spent 30 minutes on the phone with Intuit support today to pay the $20 for state filing because their software created an infinite loop to have me continuously change my password.