Can't E-File because TurboTax thinks there is an error on W-2 (actually not an error)

[user17744489123]

I'm almost done with my 2025 federal tax return using TurboxTax desktop software. However, I wasn't able to E-File my federal tax return because at the last step, TurboxTax checks my W-2 and found the following "error" (actually not an error): 

Form W-2: Manually entered overtime should not be greater than one-third of W-2 Box 1 minus W-2 Box 7.

In my case, the W-2 I received has $16743 in Box 1, and in Box 14, the QOC (Qualified Overtime Compensation) item has $16217. This W-2 is issued by the state and it is solely for overtime pay. Generally, most companies issue W-2 which include both regular pay and overtime pay in Box 1, and then notate overtime pay portion (QOC) in Box 14. But in the case of Massachusetts state PCA program, a separate W-2 is issued for overtime pay only. That is why the above "error" was checked by TurboTax desktop. However, TurboTax desktop software doesn't consider this case where a separate W-2 is issued for overtime pay only. So I got stuck with this and cannot E-File my tax return. Please fix this software issue for TurboTax desktop. Thanks.

[Vanessa A]

Is the employer information the same on both W-2's?

[user17744489123]

No, the two W-2 forms have different employer names. One W-2 only shows the regular pay, while the other only shows the overtime pay. The overtime pay only comes from the second employer, so Box 1 in that W-2 only includes overtime pay. Therefore, Box 14 QOC amount is almost equal to Box 1 (with some offset for rate adjustment). But TurboTax thinks that Box 14 QOC item cannot be greater than one-third of Box 1- Box 7. So it doesn't let me continue E-File.

[PatriciaV]

At this time, you would need to print, sign and mail your return in order to report a W-2 that is mostly overtime pay. TurboTax is currently not set up for that situation. See How do I file my return by mail?

@user17744489123 

[user17744489123]

Thanks. Please fix this TurboTax software issue for the next year.

[user17744489123]

I also find that due to this TurboTax software issue, since I can't E-File my federal tax return, I can't E-File my state tax return either. So this causes a lot of hassle for tax filers since they can only print and mail the return instead. Please fix this software issue. I would not use TurboxTax again if this problem persists.

[user17744489123]

I also found another error in TurboTax desktop software when it prepares for state tax filing by mail. In the final printed PDF of state tax filing instructions (first page), it says "Be sure to attach the state copy of Form(s) W-2, W-2G, and any Form 1099 to your return." This is incorrect. You don't need to attach Form 1099 in the state tax return when you mail it unless that 1099 has state tax withholding.