keith54
New Member

I receive the error: "State tax shouldn't be greater than gross distribution" when completing 1099-R form as received. How do I avoid error? If $0.01 less, it works.

My Roth conversion was split into 2 1099-R's from ETrade. One for distribution and one for tax withheld. On the tax withheld 1099-R, I get the error situation as described and it will not allow me to proceed unless I reduce by $0.01. State tax withheld + fed tax withheld = gross distribution = taxable amount.