E-filing When Box 16 of W-2 is Greater than Box 1
You may receive an error occurs if the amount of wages reported in box 16 of a W-2 is greater than the wages in box 1.
Some states (for example, New York) don't allow a return to be e-filed when box 16 is a greater amount than box 1 of the W-2.
If box 16 is greater than box 1 on the W-2, you'll need to file your state return by mail.
This isn't an issue for filing your federal return.