But for state withholding, many states have a limit for e-filing the state part.
My state (NC), I believe has a limit for box 14 (State withholding) to be less than about 25% of box 1...and if you go over that, you must file on paper because they want to see the actual (oops not a W-2) 1099-R to prove that much was withheld.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
