It says i cannot e-file because my state withholding was more than 50% of wages. Is this the case even if we are filing jointly?

[ToddL · Accepted solution]

Yes, when your state or local withholding exceeds a certain percentage of the state or local wages, you won't be able to e-file your return. 

This is a measure taken to prevent individuals from claiming more state/local withholding on an e-filed return than what was actually withheld. This gives the state an opportunity to confirm the amounts withheld from a physical copy of the Form W-2, rather than accepting what you manually entered in an e-filed return.