ProConnect HelpIntuit HelpIntuit

How to resolve ProConnect Tax diagnostic ref. 35739 and ref. 40079 - AL individual wages from all sources on Form 40

by ProConnect Tax Online Updated 7 months ago

This article will help resolve the following e-file critical diagnostics:

  • e-file: The wages from all sources reported on form on Form 40 or 40A column B must match all wages as reported in box 16 of the W-2. (ref. #35739)
  • e-file: The wages from all sources on Form 40NR column B must match all state wages from box 16 of the W-2. Check that each state identifier in the Electronic Filing W-2 box 15 input section have wages sourced to that state. (ref. #40079)

Why are these diagnostics generating?

These diagnostics will generate for a multi-state return when:

  • Information doesn't match on the Wages, Salaries, Tips (W-2) screen.
  • Wages are entered for a non-income tax state identified as US.
  • Wages are allocated using the source column.

Follow these steps to see if there's a state mismatch on the Wages, Salaries, Tips (W-2) screen:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Wages, Salaries, Tips (W-2).
  3. Locate the Employer Information (MANDATORY for e-file) section.
  4. Click the plus (+) button in the Employer state ID no. Click on button to expand if multi-state W-2) field.
  5. Make sure the correct state abbreviations are entered under the (15) State column.
  6. Scroll down to the Wages section.
  7. Click the plus (+) button in the (1) Wages, tips, etc. (Click on button to expand if multi-state) field.
  8. Make sure the correct state abbreviations are entered under the State column and click OK.
    • The state(s) should match the state(s) from step 5. If a state abbreviation is missing or incorrect, update it now.
  9. Make sure the correct state EINs are entered under the (15) State Employer ID No. column.
    • If a state EIN is missing or incorrect, make sure to update it now.
  10. Repeat steps 1-9 for each W-2.
    • You may select other W-2s from the tabs at the top of the screen.

Follow these steps if wages are entered for a non-income tax state identified as US:

If wages are entered for a non-income tax state and identified as US (for example, the taxpayer is a full year resident of TX and wages are entered with US), follow these steps:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Wages, Salaries, Tips (W-2).
  3. Scroll down to the Electronic Filing (W-2 State/Local) section.
  4. Enter the state abbreviation under the (15) St column.
  5. Enter the state EIN under the (15) Employer's state ID Number column.
    • If the state doesn't have an EIN on the W-2, you can try to enter all 9s.
  6. Enter the (16) State Wages, Tips, etc. [Override] for each state listed.

If wages are allocated using the source column:

If you've sourced state wages using the S in the Source column, and the Alabama/federal (and other state returns) are all correct, disregard this diagnostic and refer to the "How do I disable critical diagnostics to e-file a return?" section of this article.

ProConnect Tax

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads