Someone else had that issue.
I "think" they solved it by deleting the W-2 and re-entering it manually from scratch.....but their final post wasn't clear about it being fixed. They were also having a problem with getting the correct PA employer ID# in box 15 at the same time.
Do not take a picture, do not import from a W-2 provider...use all manual entry.
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IF that doesn't work, call Customer Support to have them check the issue with you...only they can write a ticket to get it fixed by the software folks. That would be a problem with millions of PA residents.
What is the TurboTax phone number? (intuit.com)
Make sure the 403b contributions are posted in box 12 correctly ... it should be a code E.
The issue they are having is that their contributions reduce box 1 on the W-2, but because PA doesn't allow state income deductions for certain retirement contributions, box 16 is higher than box 1. TTX is kicking out an error for this situation...at least for some PA residents. Not sure whether this error is just a PA W-2 thing, or might show up in (say) NJ, (or any other state that doesn't allow the income deduction...don't recall if there are others).
Also not clear if this might be an extraneous problem with an empty carry-over W-2 being filled in, or a W-2 where they take a picture, or an imported W-2 for some W-2 provider who messed up their data format.
Well, I deleted the W-2 that I had originally entered by pic. I reentered everything manually this time and I'm still getting the same error. I my try one of the other tax prep companies to see if they've got it figured out.
Yes. It is correct. I deleted my original W-2 and reentered everything manually and I'm still getting the same error.
I suggest you try making two W-2 manual entries. On the first one, report just the federal wages and information down to box 14, then make another W-2 entry just for the state information and numbers in boxes 15 to 20.
I'll give it a try but I doubt it'll work since it reverts to comparing Federal Wages to State Wages. As such the PA earnings will still be greater than Federal.
Which version of TurboTax are you using? CD/download or Online? If CD/download, is for Mac or Windows? Which product (Basic, Deluxe, Premier, Self-Employed)?
I have tested this with the CD/download software, and the software worked fine (that is, the Pennsylvania income was higher than the federal income).
Thanks.
I've tried both the app and online versions (using my phone). I don't even have a pc anymore.
Thank you. Tell me, when you were on your phone using, (I assume) a browser, did you just start off in the Basic product? Or another? As I noted, the CD/download version is working fine, but we are investigating on whether there is an issue with the Online version (the app is substantially the same as the Online version).
Hello! I started off with and am currently trying to use the Deluxe edition.
Any help would certainly be appreciated!
Just re-entered entire W2 manually and same issue. Issue is with Deluxe online version.
I'm getting the same error. PA is unique so I know they tax 401k blah blah and it's added to the state wages. But turbo tax needs an upgrade with PA's "unique" tax whatever.
So I attempted this and got the same error because my 2nd w2 was $0 for federal wages.
Mike,
Please try this:
Enter your W-2 as is (with the PA amount in box 16 larger than the federal amount in box 1 by the amount of your 401(k) or 403(b) contribution or whatever).
Go to the Pennsylvania state return (to start it again). Go through answering the questions. When you get to "Compensation Summary", instead of clicking Edit, click Done.
If the state income is correct in box 16 on your W-2, you don't need to click edit. In this way, you'll never see that screen that claims that "(PA Taxable Amount) can't be more than your federally adjusted wages".
Continue through the rest of the PA interview. At the end, please click on Tax Tools on the left, then Tools below that, then on View Tax Summary in the center, and admire your state summary. Confirm that the first line (Taxable Compensation) is the box 16 amount (which means that your issue is solved).
Now continue with your return.