can e-file federal and paper for states?

[akrupitsky]

The background is in the other thread 

To recap, TT doesn't let me e-file any of my returns but I can cheat by temporarily removing one of W-2s which doesn't affect the federal return, e-file federal, close the application w/o saving and then send paper return to the states.

Is this a good idea or I'd only have more red flags raised?

[Mike9241]

why doesn't the w-2 affect the federal?

you certainly can e-file fed and mail states but leaving off a w-2 could result in rejection or subsequent inquiry by IRS

[akrupitsky]

Please the other thread for more color. Basically, the second W-2 doesn't convey any new info to the IRS because it's from the same employer. Second W-2 is furnished for the non-resident state where I work.

I am a bit concerned that IRS could get suspicious if they realize that I filed paper with states (and I don't know whether they would check it) or the states could get suspicious if they realize that I e-filed with IRS (and I also don't know whether they would check it).

I'm just trying to minimize my risks here. Not of audit as such (I know I'm clean) but of time-consuming exchanges with bureaucrats.

[fanfare]

Paper filing of one's tax return is  a common thing.

Whether federal or state.

[akrupitsky]

@fanfare 

Yes, of course, except NY state requires e-filing if the text return is prepared by software, which I can't do thanks to this bug in TT. So I am potentially already in trouble which I don't want to make worse.

[JulieS]

You can delete the W-2 form that only has state tax information in boxes 15, 16 and 17. Next add the state information to the other W2 from the same employer by adding second state line. 

Here is how to do that:

1. Select Federal on the left side menu.
2. Select Wages and Income toward upper left.
3. Click Edit or Add to the right of Job (W2).
4. Click Edit to the right of the W-2. 
5. Click Continue on the next screen. 
6. Scroll down to State taxes, boxes 15,16 and 17.
7. Click Add state and enter the amounts for NY.
8. Continue through the rest of the section. 

[akrupitsky]

@JulieS 

I could have done it if it weren't there already. Both W-2s were imported from my employer electronically. TT populated the "main" W-2 inside the app with two rows of boxes 15-17 and it looks exactly as you suggest. That is why my federal return is unaffected when I delete the state W-2.

The question remains whether I'm risking more trouble if I e-file only federal return.

[JohnW152 · Accepted solution]

You should be fine filing your New York return on paper.

According to the state’s E-file requirement for individual taxpayers page:

You're required to electronically file your return if you meet all three of the following conditions:

• you use software to prepare your own personal income tax return; and
• your software supports the electronic filing of your return; and
• you have broadband Internet access.

You’ve stated very well the case that you can’t e-file your New York return – which goes to bullet number two, that the software doesn’t support the e-filing of your return.

I understand your concern with having “time-consuming exchanges with bureaucrats,” but it’s not likely that they want to waste their time arguing a position they can’t prove – that you could’ve electronically filed your return, given your W-2 issue.

I suggest filing your state return by mail and attaching a letter stating what you’ve said here.  And it wouldn’t do you any harm to actually print this Community page, with the URL visible, and attach it to your return, as well. That would show that you’ve done your due diligence – you’ve tried to e-file, and been in contact with the software provider.  

@akrupitsky