After some additional testing, I'm pretty sure I have determined what is causing the error. After entering the W-2 through EasyStep, on Form W-2 in Box 1, I have an amount that ends in 55 cents. That total amount gets divided into two amounts: Box 3 contains an amount that ends in 70 cents and Box 11 contains an amount the ends in 85 cents. When it transfers the amount in Box 3 to Form 1040 line 1a, the amount is rounded up. When it transfers the amount in Box 11 to Schedule 1 line 8t, it rounds that amount up as well. If I go back to Form W-2 and round up both the second amount (Distributions from sect. 457 and nonqualified plans) and third amount ((cont) Sect. 457 and nonqualified plans State Allocation) in Box 11, the error goes away even though these amounts no longer match the unrounded amount in the first field of Box 11 (Nonqualified plans).
I suspect there is a rounding issue somewhere in the software.
