It seems TurboTax Online has a general 1099 import problem with directly downloading Form 1099 from multiple other financial institutions. Identical problem as defined below was noted in 2022.
2023 Income Tax preparation was going fine until the very last filing step (E-File step 3). Both 2023 Federal and NY State tax returns had passed the earlier final checks. After paying for the alleged checked OK tax returns with no errors found, did payment (Step 1), then entered our ID info as required using our NY State drivers licenses (Step 2). Directly after completing payment (step 1) and entering ID information (Step 2), then get to the last Step 3 – E-File the Federal and State income tax returns. When the e-file button is clicked, Turbo Tax Online software presents an error in Fidelity RMD 1099-R entry in the NY State tax return that must be fixed. However, all data in the subject 1099-R is checked, re-checked, and verified correct multiple times. The problem is reported in this 1099-R Box 14a (the NYS withholding tax) by messaging something like this ...the Box 14a value can not be greater than or equal to the gross distribution. Logical, but the entered value is correct (exactly 10% of the Gross Distribution)! Otherwise put, subject 1099-R Box 14a value is exactly 10% of the Box 1 Gross Distribution (Box 14a value = $440.00, exactly 10% of the true Fidelity RMD Box 1 gross distribution $4,400.00). A professional Turbo Tax Online (2nd/3rd Level) software analyst needs review this problem. This issue that has been present in TT Online software for over 1 year. We experienced the identical problem as last year with the 1099-R importing, a 2022 1099-R Fidelity Investments Turbo Tax Online income tax service, the RMD paid via Fidelity affiliate National Financial Services LLC. Something is wrong with importing Form 1099-R generated by Fidelity Investment's National Financial Services LLC into Turbo Tax Online software. The only error that must be fixed in this 1099 is the detected non-existent error.
Recommendation: Stop the 1099 download into TurboTax Online from other financial institutions until TurboTax software troubleshooters can evaluate and fix your Form 1099 importing software issues. Enter the 1099 date manually.
I am a retired computing engineer and network admin... and capable of communicating with higher level software analyst(s) regarding your unresolved software issue. There is no issue with my Federal Income Tax Return... the problem surfaced only in the 2023 NY State Tax Return filing. Please do so by contacting me, Dave Paul by my known email. Many thanks.
