Thank you for the response, but combining the W-2s is not a viable solution for several reasons:
Different EINs: These W-2s are from separate divisions within the same corporation and carry different Employer Identification Numbers (EINs). Combining them would cause an IRS mismatch error and is not an option.
Separate Capacities: One role is salaried (Standard Time), while the other is strictly hourly (100% Overtime). This is not a 'dual role' under a single payroll record; they are distinct entries.
The Root Mathematical Error Remains:
The issue isn't how the data is entered; it’s the denominator the validation script uses for the 'Reasonableness' check.
The Box 1 Distortion: Box 1 represents taxable wages after pre-tax contributions (401k/403b). For any employee who saves for retirement, Box 1 is significantly lower than their actual gross earnings.
The Logic Failure: By using Box 1 as the denominator, the software creates a false-positive error.
Example: Gross Wages (Box 5) = $100,000. Overtime = $33,333 (Exactly 1/3, which is legal).
The Savings Penalty: If that person contributes $23,000 to a 401k, their Box 1 becomes $77,000.
The Bug: TurboTax then calculates $33,333 \div 77,000 = 43.2\%.
The Result: The software blocks the e-file because $43.2\% > 33.3\%, even though the overtime is exactly 1/3 of the earned wages.
The Requested Fix:
This validation script should be updated to compare the Schedule 1-A entry against Box 5 (Medicare Wages), which represents true gross earnings and does not 'shrink' based on retirement contributions.
Please escalate this to the Product Integrity / Calculations Team. This bug effectively prevents any taxpayer with significant overtime and high retirement savings from e-filing.
