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March 9, 2025
Question

Problem with IN-w form: Returns with local tax withholding greater than local wages shown on w-2 not eligible for electronic filing.

  • March 9, 2025
  • 1 reply
  • 0 views

Hi Tax Friends,

 

I get the error: Returns with local tax withholding greater than local wages shown on w-2 not eligible for electronic filing. for my IN out of state filing. The numbers are correct the Turbotax just does not seem to recognize the amount I entered as being there.

 

Oddly enough if I look at the form instruction in the help it says that this form is for paper filing only and to ignore errors (which I can't).

 

I think it is a bug in Turbotax. Any ideas?

 

Sam

 

1 reply

Zagg1Author
March 9, 2025

Update: I called Turbo Tax support and they were great. For some reason (user error?) Box 18 for local taxes in the FEDERAL W2 portion was blank. So even though I filled it in at the State level and even on the form, it does not carry back (which makes sense) and this was causing the error message.