We used online version for both federal and state PA 2020 returns. The PA dept of Rev sent us a letter that they use box 5 income but your software used box 1.
Is this a known error? Can I do our return over with the corrected/updated online software?
Check your W2 and your tax return. Is the amount in Box 1 your wages without your 401K. Box 5 is your wages including your 401K. If you have a 401K, then Box 5 will be higher than Box 1. Make sure that you did not use the amount in Box 1 for Box 5 when you did the return. If you imported the W2, it is possible that it did not transmit properly.
If you did your return with the wrong amount in Box 5, then you will need to amend them.