Filing Electronically

[grigonis]

The on-line filing is telling me I have to file paper Federal and state just because I had extra state tax taken out to cover taxes.  Why?

[LindaS5247]

Yes, when your state or local withholding is in excess of 50% of your W-2 wages, you won't be able to e-file your returns. 

The state will confirm the amounts withheld using an actual (paper) copy of the your Form W-2, rather than just accepting what you manually entered in an e-filed return.

This extra verification process is used to stop people from claiming more state withholding on an e-filed return than what was actually withheld. 

[grigonis]

So I should file my Federal Return by paper now and when should I file my state?   Once my Federal has been accepted?  

[ThomasM125]

You can file them both at the same time. The only reason you would want to file the federal first would be if you are unsure that it will be accepted for some reason, in which case you could change it and resubmit it without having to amend your state return. But if there is nothing unusual about it, you can file both of them at the same time, it won't affect how they are processed.

[grigonis]

Even though New York State says they will only accept electronic returns?

[grigonis]

Problem is that New York State requires, by law, to file electronically.   Can Turbo Tax help?

[LenaH]

Per NYS, 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.

Since your return requires extra verification and you cannot e-file, you are allowed to mail in your return. 

@grigonis  

[grigonis]

Thanks Lena.   This answers my questions.