Not eligible for Electronic Filing - Form 4852

[SandboxExperience]

I use the TurboTax CD/Download version. I finally completed my tax return, but at the end of the filing review the program is informing the following:

Not Eligible for Electronic Filing

Why? Well, it looks like you have a tax situation in your California return that makes it ineligible for e-filing.

Reason for e-file ineligibility:

     Returns with Federal Form 4852 (Substitute W-2) are not eligible for electronic filing.

These rules are set by the Franchise Tax Board.

The good news is you can still print your California return and file it by mail.

Two questions:

1. TurboTax CD/Download version continues to allow me to file via e-filing.  Why?  I am able to continue to navigate through the program all the way to the payment page ($25), but I stopped short of trying it out.  Will it accept my payment even though it just informed me that my California tax return is not eligible for electronic filing?  Or, will it stop and not accept payment due to the fact that it states I am unable to file eletronically?

Side note: I filed the Federal tax return electronically already since it never stated that I could not file electronically.  

2. If I file the return by paper, is it required for me to send the paper forms AND check by mail?  I have an account with MyFTB (Franchise Tax Board Homepage | FTB.ca.gov) and it looks like I can pay online.  So, if I pay the amount due online, can I just mail the paper form without a check?  Do I need to provide a receipt / confirmation number in the mail as proof that I paid online?  Or is paying online moot point and I need to send in that paper check?  

Thank you ahead of time.

[DawnC · Accepted solution]

Was your federal return accepted with a substitute Form 4852?   Can you check your e-file status and confirm - it should have been rejected...  If it was accepted, that is a new thing because you have never been able to e-file with that form, see this FAQ.   I don't know if it will take your payment for an e-filing fee.   But if you can't e-file, don't pay the fee.   You may have to jump through a few hoops to get it refunded.   

On the 2nd question, yes, paying directly at the FTB is your best option.    If you mail the return, you have to include all of your forms, but you do not need to include any payment or payment information.   There will be an instruction sheet when you print that lists everything you need to send.    If you pay online, you get an instant receipt.  If you send a check, you are left in limbo for too long, in my opinion anyway.   

[SandboxExperience]

Hi Dawn, 

Yes, it seems like filing the Federal Return electronically went through without any issues.  TurboTax emailed me the status first that it was pending and then another email followed little later stating, "Your federal tax return was accepted by the IRS."  

Our (married, filing jointly) 4852 was due to my wife contributing by mistake, earlier last year, into her Rollover IRA instead of Roth IRA.  She then proceeded to transfer the Rollover IRA to Roth IRA (thinking that would solve the issue).  She had to reach out the broker for help after we noticed the problem while work on the tax return.  They helped her to fix the issue and said the amount should be a "recharacterization", so the amount should not be taxable.  

Thanks.