I don't think that really solves my issue. The State Distribution is $0.00. The State Tax Withheld is the $1543 and change. Turbo Tax is telling me the State Tax Withheld cannot be equal or greater to the State Distribution. I'll give what you say a try and see if that changes anything but I don't think it will. Plus you indicate to enter the State Distribution as Box 1 but Box 1 is the Gross distribution which was the full amount of the cash surrender.
