My wife received retirement distributions and the plan's 1099-R form box 14a shows an amount of $1,200. TurboTax successfully pulled the 1099-R from the financial company and I confirmed that the $1,200 amount shows up in TurboTax.
We are filing jointly but the calculated Virginia state refund is $1,200 lower than expected. The reason is that TurboTax, instead of showing $1,200 in line 19B of the Virginia form VA760CG, which is the state tax withholding for the spouse, it's showing zero.
It seems that there is an error in TurboTax; the Virginia state software is not pulling the state tax that the retirement plan administrator is withdrawing from retirement distributions.
