unable to efile with high state tax withheld

krav · ‎03-22-2021

I have a client with NY tax withholding that exceeds 25% of the taxable income - I know I cannot e-file the NY return, but can I still e-file the federal return? or will I get an error message? I have to mail the return to the client, so if I need to prepare paper return for both fed and state, I would rather know now than later. Thanks for any help!

Just-Lisa-Now- · ‎03-22-2021

IRS shouldnt care about NY withholding limits....are you getting the message for the federal when you go through the REVIEW button?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

krav · ‎03-23-2021

Yes, unfortunately, it is a federal error - you can't have more than 50% of state withholding compared to income. My client is actually close to 100%. I guess I'll just have her paper mail everything - oh well...

bt1 · ‎05-10-2021

I entered two separate NY wages and withholding lines on the w2 worksheet with the wages the same on each but splitting the withholding....hopefully it efiles correctly!