That is correct. Tax withholding cannot exceed 50% of the reported earnings in Box 1. In some situations, the state wages are different from Box 1. Regardless, the income must be reported as received on Form W-2. Otherwise, if the earnings are reported inaccurately, the employer would need to reissue a corrected Form W-2.
The returns must be paper filed so that the figures can be verified.
For more information, see:
How do I print and mail my return in TurboTax Online?
How do I print and mail a return in the TurboTax for Windows CD/Download software?
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