I have a similar issue. Our State e-filing is being held up because on the Form 1099-R we received for the cash surrender value of my husband's life insurance policy, Box 14 (State tax withheld) has the dollar value that they withheld of $1,543.40. Box 16 (State distribution) has $0.00 in it. TurboTax is saying Box 14a (which I take to mean 14) cannot be greater than or equal to the amount in the State distribution. That would be impossible since Box 16 is $0, any amount would be greater. The only way I can rectify it is if I delete the amount in Box 14 but then it changes our refund amount. In New York State, the state is not including any of this money we received from this cash surrender as taxable income. So how do I get around this? Should the amount in Box 1 (Gross distribution) be what is entered in Box 16 (State distribution)? We don't want to lose getting that withheld money back if it shouldn't have been withheld.
