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The following diagnostic is generating:

Form 2555 - W-2 # {PrefixNum} : Federal income tax or social security tax withholding cannot be greater than 1/2 of the wages on the W-2.

Solution:

This is a validation check to prevent data entry errors, such as:

Entering withholding as gross wages.

Swapping wage and tax values by mistake.

Incorrect currency conversion if foreign wages are involved.

Open the W-2 entry screen.

Review:

Box 1: Wages.

Box 2: Federal income tax withheld.

Box 4: Social security tax withheld.

Make sure:

Box 2 ≤ 50% of Box 1.

Box 4 ≤ 50% of Box 1.

Correct any obvious data entry issues.

If you need to paper file:

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Paper file.