Can state wages be more than federal wages if working and living in the same state? Both of our W2s say so but Turbotax says no...

[thesowers7]

My wife is clergy and I am not.  Both of our W2s show state wages higher than federal wages which I think is consistent with past years.  But our Turbotax says our state (PA) wages cant exceed federal?

[Mike9241]

yes it's possible. some states don't allow the same deductions as Federal in arriving at taxable wages.

to give you a better answer tell us what state.

[thesowers7]

State is Pennsylvania.  

[SteamTrain]

@thesowers7 

 A lot of PA residents are having trouble with this issue...sure hope TTX is working on fixing it.

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A few (but not all) have been able to fix the problem by deleting the offending W-2 entirely, and then re-entering it entirely manually   ...do not import, do not take a picture...do not drag-and-drop some computer form.     "Change how I enter my form".....then "I'll type it in myself"

[DMarkM1 · Accepted solution]

Yes in PA your box 16 wages may be higher than box 1 due to PA taxing contributions showing in box 12 which the IRS does not tax.  It appears the fix is to delete all the forms W2 and re-enter each form manually. 

NOTE:  It may also be helpful to clear your browser cache after deleting the old entries and before re-entering the form information.  Here is a link with instructions if needed.  

Be sure that PA is in box 15 to trigger the unique handling.  These steps will allow the unique W2s to process correctly.