Massachusetts withholding exceeds 50% of wages--can't e-file

[bryanjg]

I went through the e-filing process and Intuit collected my $26 for e-filing my state return via credit card.  Only then did the software tell me that I couldn't file electronically because my withholding barely exceeds 50% of my wages on my W2.  Software says to fix the error.  It isn't an error.  I use extra withholding on my pay for part-time work to avoid making quarterly payments, and it works.  I'm due a refund in Massachusetts. Now what?  And can I get my state filing fee refunded?

[bryanjg]

And going back to try to just remove the e-file choice for my state return doesn't work.  Even if I say I'll e-file federal and mail MA return, TurboTax insists on my correcting the state withholding "error."

[KathrynG3]

The state fee is for the use of the software. Filing, electronically or by mail, is included in the price but charged at the end of the process. Unfortunately, it would appear that the state return must be mailed for 2020.

To discuss this with TurboTax phone representatives, see: What is the TurboTax phone number?

To avoid this dilemma for 2021, you may want to be sure to not withhold more than 50% from the part time job, but cover that portion of the tax by partially increasing the withholding from the other job, instead. 

It is a great idea to increase the withholding because the IRS then deems the taxes paid in evenly throughout the year, regardless of when they were actually paid.

TurboTax offers several Tax tools and tips to minimize your tax burden. See: Top 8 Year-End Tax Tips for more information.

[bryanjg]

I eventually connected with Customer Support and a very helpful representative.  Essentially, he had me plug in a false number for my MA withholdiing (I used $0) and recalculate--which of course shot my tax due to MA way up.  Then I attempted to file the federal return electronically but the software insisted on fixing other, newly discovered "errors" on my MA return, which I again faked.  Finally I got to e-file federal, went back, corrected the state return and printed the state return for mailing. Unfortunately, the pages don't have signature blocks and the like since it still thinks I'm filing electronically. Not sure it's going to work.

Intuit has already refunded my state filing fee to my credit card.

I called the Massachusetts Dept of Revenue to ask why I couldn't file electronically with my withholding greater than 50% of my earnings.  News to them, they said.  They promised to research it and get back to me.

[ErnieS0]

You can change your filing option to file by mail and reprint your state return.

• Select File in the left column
• Revisit Step 3 Get ready to save and file your returns
• Select File by mail and continue to print your returns

It's not recommended to file an incorrect income tax return. For example, if you itemized deductions, changing state tax withheld may affect other calculations on your federal return.