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Have you e-filed your Federal return yet? If so, you will need to wait until your e-file has been accepted to be able to file your state return. For more details on this, please see our Help Article.
No, I have not e-filed my Federal return. TurboTax keeps popping-up a "Needs review" message on my federal return. Apparently the web site does not like my W-2 having an amount less than 50 cents in box 1 (my box is $0) and only offers me the print-and-send option. I'm currently debating if I should just change the wages to 50 cents so that I will be allowed to e-file, and then amend with a correction back to $0. If processing of my federal return is necessary prior to e-filing my state return, then changing box on the W-2 would be the best decision. (My 2021 sat at the IRS for 6 months before it was quickly processed -- without problems -- in September 2022). Either way, I should probably request a filing extension from the state. I was not aware of the new federal-before-state filing requirement.
You can delete your W-2 with $0 in it, or, you can put $1 in Box 1 on your W-2. It will not change your tax situation, and allow you to Efile your Federal return and State return. However, you are correct that the IRS will not accept a W-2 with $0 in Box 1.
Here's more info if you are trying to report Qualified Medicaid Waiver Payments.
In my situation, the W-2 was issued because I receive annual HSA contributions from my former employer; not an EIC issue. When I delete the W-2, the HSA contribution disappears from my Form 8889, and the state "wages" on my W-2 (imputed from the HSA contribution) which I should report disappears from my state return. But if I change the federal wages to $1, all HSA reporting is correct (same as when my federal wages is $0). Although my federal income goes up by just $1 by tweaking the W-2, I don't expect I, or my former employer, have to pay OASDI or Medicare tax on the extra $1 income. Even if I'd have to pay the tax and maybe a small penalty, I'd like to have the benefit of TurboTax e-file both my federal and state returns.
@MarilynG1
If you worked for your former employer in 2022 and received a W2 from them, you can add the HSA information to the original W2. If not, then you can add $1 to the W2 to see if you can efile. That $1 should not raise a red flag with the IRS regarding FICA taxes.
Let us know if this works and you are able to efile successfully.
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