The IRS form reserves box 14 for state tax withheld, box 15 for the two character state code and the Payer's state ID number, and box 16 for the amount of distribution reported to the state.
This is what TurboTax shows.
However, the IRS actually does not define what goes into these boxes (because they are for the states), so sometimes entities that print a 1099-R may not follow that scheme.
EXEMPT in box 14 doesn't really make sense, since it is the state distribution (box 16) that should be exempt. And NY belongs in box 15, not 16.
In your case, it seems, there was no intention to withhold state tax on this distribution, so you might as well just leave boxes 14-16 blank.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
