Is 2021 PA tax law new that you are taxed on your retirement account contributions? I get a error message saying state can't be more than federal wages from my w2? Help!

[carlyct6]

I did not have this problem last year in 2020 filing. Something doesn't seem right.

[RaifH]

Yes, the state of Pennsylvania does tax retirement account contributions. It is one of the few states that does not conform with federal law in this regard. This will cause the state wages in Box 16 to be higher than your federal wages in Box 1.

Can you clarify what the error you are receiving states and where you are getting the error message?

[carlyct6]

I am getting the message For when I am completing the state return it will not allow me to enter wages that are higher than the federal wages.  But that is not correct, since for PA u have to put in the state wage total and that is more than the federal wage total. It won’t let me go forward unless I have it match my federal, which is not correct.

[RaifH]

Please follow these steps to see if it fixes the error:

1. Delete the W-2 in the Federal section of your tax return by clicking Edit next to Job.
2. Click the trash can next to the W-2 that is causing the error. 
3. Sign out of TurboTax and clear the cache of your web browser.
4. Sign back in and manually type in the W-2.