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Resolved: Error Code 0302 - Form W-2 witholding greater than zero

Updated: 1/21/2008
Article ID: 5364

This issue has been resolved.

This error was received while attempting to file electronically or during Federal Review

We have confirmed with the IRS that Error Code 0302 is a rounding issue on the W-2. The rounding comes into play when you have more than one W-2. In the past, the IRS has provided some degree of tolerance so that rounding differences of small amounts (like $1) are not rejected. There is no tolerance this year and that is why your return was rejected. Both TurboTax and the IRS are right.

If you're wondering why there is be a difference between IRS and TurboTax reported amounts, read on.


 		 W-2 Amount IRS Amount TurboTax Amount
Wage 1 $400.50 $401.00 $400.50
Wage 2 $400.51 $401.00 $400.51
Total $801.01 $802.00 $801.00

      
For total wages (cents don't get reported), the IRS sees $802 and TurboTax reports $801. The reason for the difference is that the IRS rounds amounts for each W-2 and then adds the amounts, whereas TurboTax adds the exact amounts from each W-2 and then rounds the final number. We are working with the IRS to provide some degree of tolerance.

Workaround

If you continue to receive this error, try this:

  • Re-enter your W-2 in whole dollar amounts.
  • Round up to the next whole dollar amount anything 50 cents or greater.
  • Less than 50 cents, round down.

 

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