I got tripped up on this with NY withholding (Box 14) on the 1099R, but no State Distribution in Box 16 - presumably because pensions are not taxable in NY. I could have filled in something in Box 16 but that might make the pension income taxable. I had no choice but to mail in a return - the first page of which warned that I must NOT mail in a return. IMHO Fidelity should have refused to let me specify additional withholding if that is not permitted. And if NY can figure out how to handle it on a printed return, why can't e-file handle it? Fidelity told me that thousands of retirees specify withholding amounts for their pensions in NY. There must be a lot of angry retirees in NY who find out at the last minute that they have to file a printed return. If NYS and Fidelity are just being obstinate, I wish Intuit would use their influence to push through a solution just as good customer relations.
