That could well be....
...the BUT is that many states set their own limits as to how high box 17 can be relative to box 16, before the State itself allows an e-file. Some set it lower at 25%.
Because it is so rare that box 17 will be 50% or higher than box 16...the State involved then requires that those tax returns be printed and mailed to them, along with the all the W-2 forms, (or any others that show state withholding on them)....so that a human can confirm what the situation is, and that the withholding entered isn't some slip-up.
So you must change the State part of your tax filing to File-by-mail. You print out the state forms , gather all the State copies of every W-2 you've entered, include any other tax forms that show state withholding...sign/date, and take to the Post Office. (use a tracking method, Certified, or Return Receipt)).
a) Keep a second "paper" copy of everything you paper filed for yourself
b) some states require a copy of the Federal 1040 when you paper-file the state forms....if that is needed, when you go thru the paper-mail-filing process, another copy of the Federal 1040 will print out with your state forms.
Good Luck
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
