That is true for Federal, but the state (and TurboTax) certainly do care if there is state tax withheld. TurboTax will transfer any box 12 state withholding to the state return for the state listed in box 13.
However if the 1099-R has a non-zero value in box 12 then it will complain if there is no state listed in box 13 and no payers tax ID number in box 13. Having a state tax withheld and no state to apply it to is an error to TurboTax.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
