The solution may be the W-2, Box 14, Code K. Change the code from "NY Tax Exempt"" to "Subject to NY Tax". Then go to File Section. Go through up until the last page that has Transmit my return. Don't transmit the return.
Once you get to this page, Go back to the W-2 and change Box 14 Code back to "NY Tax Exempt"
Now go back to File Section and you should be able to efile your return.
