The IRS permits the elective deferrals t to be reported on either line 7 or line 17. However, I believe that TurboTax Business wants to see agreement between the line 7 amount (or perhaps the sum of line 7 and line 8 amounts) and the sum of W-2 box 1 amounts. If the elective deferral is included on line 7, I think that causes TurboTax to complain of a mismatch in the sums.
