Although I think this may be a temporary remedy to file the Turbo Tax return without triggering an error on Turbo Tax, it is nonetheless an error on the part of the W-2 preparer. The preparer should have left box 15, 16 and 17 blank when the employee lives and work in Florida.
The tax implications whether the IRS program will trigger an error message are unknown. Although there should not be momentary consequences.
The bottom line is that the W-2 was prepared incorrectly and any responsible employer/prepare should file a corrected W-2c form. This will prevent continuing the same error for years to come, especially if non qualified deferred compensation is payable over many years.
