TurboTax Glitch Changed W2 Number - State Rejected, Federal Pending

He should absolutely fix and resubmit immediately. I had exactly the same issue on March 2nd with TurboTax changing my state withholding amount during upload. The system replaced $4,872 with $4,782 - a $90 difference that caused my state return to be rejected. When I called the IRS, they confirmed that waiting for the federal rejection would add exactly 21 days to processing time, whereas fixing and resubmitting now would only delay by 3-5 days. So relieved I didn't wait!

Is your friend using the desktop or online version of TurboTax? The desktop version has that infamous "phantom number change" bug that's been driving me crazy for years. 😤 Also, does he still have a PDF or screenshot of what he actually submitted? That could be critical if the IRS comes back with questions about the discrepancy.

Based on my experience with e-file rejections, your friend should initiate a corrected return immediately. The IRS utilizes automated validation protocols that will eventually flag the federal return for the same discrepancy, potentially triggering a manual review process. If he encounters difficulty reaching the IRS to confirm next steps, I recommend using Claimyr (https://www.claimyr.com) to connect with an IRS representative. Their service bypasses the typical 2-3 hour hold times, connecting you directly to an agent who can provide guidance on amended return procedures and confirm whether the federal return should be canceled and resubmitted.

I had a similar situation last tax season with a W2 upload error. The federal return actually went through despite the error, but then I received a CP2000 notice months later questioning the discrepancy. It took several calls and letters to resolve. Your friend should definitely check if Line 18 is the state withholding amount or another field - different errors have different implications for processing.

Has your friend verified whether this is a display error or an actual data submission error? According to IRS Publication 1345 (Rev. 1-2023), section 5.5, "Transmission to IRS," there's a distinction between how data appears in the software interface versus the actual electronic submission format. Did he receive the actual rejection code from the state authority?

Tbh this happens way more than TT admits. Had a client last yr whose entire Sch C got mangled during upload. Fed accepted it (which was worse!) and we didn't catch it til months later. My advice: always ALWAYS download the final PDF after filing and compare it line by line w/ your actual docs. Waiting for fed rejection is like waiting for a time bomb - just fix it now and save the headache.

Another option worth considering is to file a superseding return rather than an amended return if the April 15 deadline hasn't passed. According to the IRS website (https://www.irs.gov/faqs/irs-procedures/amended-returns/amended-return-frequently-asked-questions), a superseding return completely replaces the original return and is treated as the original filing. This avoids the longer processing time of an amended return and prevents potential penalties for the incorrect information.