My Form W-2 shows State Withholding equal to my State Wages because I did not take any payment from this side job and had all my wages paid to my resident State because I always owe taxes in my resident state because my major job is in another state. Turbo Tax says I can't efile if a W-2 has state withholding greater than 50% of state wages. Fine. But NY State (which I need to efile), will not accept mail in returns, and I can't efile NY without efiling Federal. So now I can't file any of my returns because Turbo Tax will not accept that my W-2 is correct. It is not against the tax code to have state withholding greater than 50% of state wages.
