I have resolved the issue. I have two W2. Both have 414h. I got the error because I didn't use "Subject to NY Tax" for the W2 from another state (CT). I have to change it to NY taxable also, in order to do efile. Otherwise, it won't let me, and I will have to file by mail. I tried NY Tax Exempt. It won't efile either. Eventually I did efile with Subject to NY Tax for the 2nd W2 also. But some told me the 414h for W2 from other states, it shouldn't be considered taxable income. I have not found the answer yet. If it's a mistake, I may have to amend the filing at a later point.
