I would be concerned that if you leave 14-16 blank, California will tax you on it and it sounds like it should be exempt from state taxes. Try leaving that section blank like you said, to see if it affects California.
You mentioned16 having NY in it. It should be the amount in dollars distributed, because 15 identifies the state. Anyways, another option would be to enter the NY information in box 15, and leave14 and 16 blank (or zero in both boxes). The zero may cause a diagnostic.
