Many state tax "software" forms require that box 16 be filled in....usually with the box 2a amount.....especially if box 14 has withholding.
But I don't know where the WI tax "software" stands on that issue.
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Fo my own state (NC), that box 16 value is the also known as the NC State Distribution amount....and when entered, it backfills box 16 on the "software" form.
In certain states (and NC is just one), if the state exempts that 1099-R's income because it is from a Military, US Govt, or State-sourced pension, if box 16 is left empty, or a zero, then zero is removed from the state income, wheras the full value of box 2a must be entered in box 16 to remove that income from being taxed by the state.
NY is another one. The State there nay exempt up-to $20,000 of certain retirees income form state taxes. IF box 16 is not filled in by the user then zero is subtracted from NY income, when up-to 20,000 could be deducted.....(and the NY software will not accept a zero in box 16 if any withholding is in box 14)
But, like I indicated, I don't know how the WI tax "software" deals with that issue, or if box 16 is important for the WI software.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
