MonikaK1:
Consistent with your input, and that of Vanessa A, I left boxes 15 - 17 blank on the W-2 within TT. Although the error message was still being received, I proceeded as you suggested through the Efile process for both Federal and PA. Unfortunately, after entering the required information, including payment of the PA Efiling fee, TT would not allow me to Efile. A message was received stating that "we need a little more information that we didn't get earlier." I selected Continue and the prior error message re the PA entry not matching with any states in Box 15 was shown. The option identified was to paper file. My strong desire is to Efile (and I already paid for it).
The email notice I received from TurboTax Community on 3/27/24 did not include the input from you that is now included in your message as an "Additional comment" (and the format of the input regarding sending a diagnostic file was in a different format (numbered). I did send a diagnostic file and its token # is 1221467.
As to the "PA" noted in the Nonqualified Distribution, I tried to leave that field blank, and also noted that it would only take 2 digits, and not numbers. I found no entry that would eliminate the error message.
As to your Additional comment that I now see:
1) I have been receiving payments under this pension plan for over 7 years, and the reporting on the W-2 by my former employer has been consistent, with no PA tax withheld (and field 15 has had PA and employer number included, but fields 16 and 17 have had "$0").
2) As required by PA, each year I have sent to them a copy of the applicable W-2 and informed them as follows: "A W-2 was received from Vanguard Fiduciary Trust Company that includes wages of $XX,XXX.XX from a pension plan. The plan meets the four characteristics of a "Qualified Plan Program" per Answer ID 433 published 12/03/2002 by the PA Department of Revenue: Therefore not taxable for PA purposes." Another employee from this same company retired in 2022, and also receives payments from the same pension plan. He received an inquiry from PA as to the taxability of this plan, and after providing the exact same input as noted in my quotes, PA accepted the amount as nontaxable. In addition, I have never received any form of notice regarding the amount being taxable, and PA has NOT changed its laws as to such payments.
3) As to the Distributions from the plan: I made no elective deferrals to the plan. It is entirely funded by the company. In addition, since I made NO elective deferrals, there were definitely never any previously taxed elective deferrals.
Hopefully this information, and the diagnostic file assists in bring a solution quickly forward so as to allow me to Efile both the Federal and PA returns before the 4/15/24 deadline.
