1099r error state tax withheld preventing efile - correctly entered amount in box 12. Amount is 10% of gross distribution. why error? won't let me efile. help.

[booty888]

1099r

Gross distribution was $3,029.86

State tax withheld  was $302.99

Fed. tax withheld  $454.47

message: For box 12a efilings, New York State, tax withholdings cannot be greater than or equal to gross distribution or state distribution.

Error is with Turbotax. Please help. 

[macuser_22]

Delete the 1099-R and re-enter.  It sounds like a decimal point got missed.   Re-enter it manually if you imported it - sometimes imports can mess up.

[AnnetteB · Accepted solution]

If the suggestions made by Super User macuser_22 do not solve the error condition, try the following steps.

Go back to your Form 1099-R entries and edit the one that is causing the error.  Enter the amount shown in box 1 of that Form 1099-R in box 14.  The error condition could be comparing a blank or zero value from box 14 to the amount of state withholdings which is greater than zero.  Entering an amount for box 14 should clear the error.

To revisit your Form 1099-R entries, use these steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “1099-R” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to 1099-R”

• Click on the blue “Jump to 1099-R” link

This will bring you to a summary page showing all Form 1099-R entries you have made.  Click Edit beside the one you need to change.  Once you have made the change, click Continue all the way through the follow-up questions until you get back to the 1099-R summary page. 

[booty888]

Thank you. You solved the problem. It worked and I just efiled.

[AnnetteB]

Great!  Glad it worked.

[rccurry]

Unfortunately, following this process still didn't work.  The strange thing is that it was fine until there was an update performed and then it began returning this as an error and I can't seem to fix it no matter what I do.

[mnjarmy]

Line 1 is the gross distribution and line 14 is the state tax withheld on my 1099R. Those are not the same number nor should they be. Why is it not letting me efile? My numbers are correct 

[AnnetteB6]

You are correct, for a 2022 tax return and a 2022 Form 1099-R, box 1 and box 14 should not be the same number.  The original solution was for 2019 or possibly earlier than that.

Try entering the box 1 amount in box 16 for the state distribution amount and see if this will clear your error and allow you to electronically file.

@mnjarmy 

@rccurry 

[rccurry]

This works to clear the error, but it doesn't agree with the 1099 R now.  Can to file like this since the 1099 R may be in error and it makes logical sense.  Thanks for the response!

[AnnetteB6]

Yes, you can file the return after making the extra entry in box 16.  Nothing has fundamentally changed by adding that entry except for clearing the error message.

The taxable amount of Form 1099-R is determined by the data entered in the 'Federal' part of the Form 1099-R.  The 'state' section is not used for this purpose.  Plus, the information that is transferred to the state returns is also based on the 'Federal' section plus the state taxes withheld.  Box 16 does not transfer to the state return.  

@rccurry 

[kathryn_nyc]

This solved my problem. An answer from Turbo Tax employee should be moved to the top of the list for ease of finding. The answer from 2019 shows up on top and the answer did not solve my issue. Thank you.