CA E-Filing W-2 (Must Add up to California Wages Ref #5218)

[PeteTax]

I have this continuous error. I looked around and was unable to trouble shoot this issue.

The error states e-file. For California e-file purposes, CA state wages on Form W-2 must add up to total California wages reported on the CA Tax return. Please check the entries in (Screen 10, Wages, Salaries, Tips, Code 3 and 13). It is not recommended to use State Wages, if different for CA file returns. Instead, allocate CA wages to the main form by using the primary wages input (ref# 5218).

My client has different wages shown on Federal wages and Ca wages. The issue is with the HSA contribution. As instructed, I soured the income and reconciled CA Wage with CA wage. As the CA wage was greater than the reported Federal amount, I created a separate line item in the worksheet to reduce the Federal wages reported. 

I went into the Wage Box 1 and did the following inputs. 

1. Wage Amount, CA

2. - Wage Amount, US (reconcile to match with the W-2 [Negative Value])

Can anyone provide any insight how to get this critical diagnostics resolved?

Thank you in advance, 

Peter Paik

[George4Tacks]

Don't mess with stuff. Enter Code W from box 12 and the program will automatically adjust the CA wages.
I think this will resolve your related question, which really is just a variation on this same theme.

[PeteTax · Accepted solution]

I was able to resolve the critical diagnostic. The issue was a user error. 

The client was a CA resident with a multi-state W-2, and the spouse was a CA state W-2. The issue was that I automatically assumed that the spouse's income would automatically flow to the resident state and did not apportion the income in Box 1 to California. Unfortunately, the operation must be consistent, and even if the W-2 is sourced to California, you have to input the data manually. If you did not source the single state W-2, you would see the CA E-Filing error. 

I hope this helps!

[cpa41]

Hi I'm sorry this doesn't make sense to me? How did you fix it?

[evelinafranco]

How did you fix it?

[OldCPA]

I'm getting this diagnostic when I don't have a multi state return, and the box is checked full year resident.  The state codes are in the Wage screen along with the correct CA ID#.

How does this get fixed?

[George4Tacks]

@OldCPA generally this single state error comes from the entries in Screen 10 > Electronic Filing (W-2 State/Local) where you make an entry for anything other than (15) St and (15) Employers State ID Number. DO NOT enter anything in that grid other than the first two columns.