2022 fed tax rejected

[rwbw42]

I am a long time Turbo Tax user. This year, after I have input all my data and e-file my return but got rejected almost immediately. The error message shows below:

FW2-001-02 - The sum of all Form 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.…..

It seems  I have problem with my non-qualified W2. After I checked, I found out that the income does not show up as 1040 W2 income but as other income.

Is this a Turbo Tax software bug or an IRS error? How should I fix it?

[ThomasM125]

Could you clarify what you mean by non-qualified W-2? What form is that income reported to you on? If it is a W-2, what boxes have amounts in them? It sounds like you have an unusual situation and often the IRS won't let you e-file in those instances.

[rwbw42]

Thank you for your response.

This W2 is the Supplemental Saving Plan of my previous company. It’s received as W2 Earning. This W2 form box 11 Nonqualified plans shows this amount besides the box 1.

I don’t have problem to report and e-file with TurboTax in the past years. It adds up with our other W2 incomes and shows in 1040 form. I found out the 1040 print out of this year shows this income falls into other income instead of W2 income.

I don’t understand the internal code error messages in TurboTax so I can’t fix the problem. Please help to resolve this issue. I have been e-filed with TurboTax for many years.

[DaveF1006]

This is an unusual situation. This is an instance where you should consult live tax support. The expert at that end can share your screen and possibly discover a solution that will solve this issue. Without looking at your screen, I am unable to determine how this appears as other income and not W2 income.  

[rwbw42]

I have called TurboTax support yesterday and went through screen share of my tax. She can’t find any problem. If you like, I can do the same with you one more time. Please contact me with email or call me. Thank you!

I have also done one more experiment that input this W2 to both 2022 and 2021 TurboTax.(only this item).  The 2021 version shows it as W2 income but the 2022 version shows it as other income in the 1040 output file. Can you explain that? I am really concern this is 2022 TurboTax bug.

[AliciaP1]

It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@rwbw42

[rwbw42]

I don’t see the ‘Tool center’ in the Tools pop up. Is the deluxe version has it?

I have seen the ‘Send Tax File to Agent’ in in Online item. can I use that?

Ok, I did it. The token number is *******

[AliciaP1]

I apologize for the confusion.  I didn't include the instructions for TurboTax Desktop, but I'm glad you were able to get the token.

Your return is completed correctly and all line items are populated correctly.  For the tax year 2022, the IRS changed how the non-qualified plan payment shows up on your 1040 and therefore since you have no other W-2 income for the year, you are unable to e-file your federal return.  You will need to print your federal return from TurboTax and mail it in to your correct service center.

To print your Federal Tax Return in TurboTax Desktop you can follow these steps:

1. Click Print Center at the top right of the screen in the black menu bar
2. Uncheck the box for your state return on the right and ensure the line All official forms required for filing is checked on the left
3. Click Preview Print Copy to see the pdf version of your return and you can print from there

See Where to file for the address of your service center for your state.

@rwbw42

[rwbw42]

Are you kidding me? I can’t e-file if I no longer have W2 income!? I just don’t believe it and will ask IRS for this.

First, that is still a W2 income form. Why TurboTax can’t put in line 1 of my 1040 as W2 income?
One more strange thing: my print out pdf shows W2 1040 1a W2 income is 0, but go down to (Payments) line 25, it shows a Federal income tax withheld from Form W2 a non-zero value which is my real Fed withheld.
Do I also need to print to file and mail my CA state Tax? I have already paid for my state e-file. If I can’t do it, I would like to get it refunded.

[DoninGA]

Add $1 of interest income to the federal tax return so it can be e-filed.  The state return can be e-filed when the federal return is e-filed.

[rwbw42]

I have more than $1 interest income in my 1099-INT Fed return. I’am retired so I don’t work for W2 any more. Any other better idea?

[rwbw42]

Can I double side print of my tax return forms? I have not mailed my return for a long time, so I don’t know what to do and what not to.

[MichelleLO]

Please see the explanation provided by SusanY1 in this thread here regarding printing your return double-sided. 

@rwbw42 

[rwbw42]

I have proved that the 2022 TurboTax has bug in my case. There is no such thing that I can’t e-file without W2 income.

[PatriciaV · Accepted solution]

We have confirmed that this is an IRS error dealing with processing W2s, so many taxpayers are in a similar situation. The IRS lists this as a fix for the next update, probably midnight February 6, 2023. Your best option is to attempt to e-file again on the 7th.