This is not a TurboTax mistake, because that is not how tax withholding works. The state of Kansas has no idea what your tax bill is going to end up being, even if it knows the size of the KPERS distribution. This is because the state has no idea what other income items you have or what other deductions, for that matter.
So it is customary to withhold nominal amounts, say 10% or 20%, which may or may not be enough. It's also possible that KPERS reached out to you to ask you how much you wanted withheld. Of course, TurboTax would have no idea what that amount would be.
This is true for W-2 withholding, withholding for IRA and pension distributions, and even gambling winnings. The amounts withheld - unless you specify an amount - are just a guess that won't be reconciled until you file your tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
