2021 WI 1099-R

[lw-johnston]

I'm currently interring income data and my 2021WI 1099-R does not have a box 16.  Last box is 15.  So on the form, I simply left the box blank?  Seems like the other potential would be to use the Box 2a Taxable amount as the State Distribution amount.   When I left it blank then I got a new dialogue box that says "Let's Verify This Entry"  That makes me think I should enter the Box 2a amount.  I thought the program might take the 2a amount off the form and complete the calculations so I didn't want to add anything, but seems like I should?

[DaveF1006]

No, if there is no Box 16 information listed on the hard copy of the 1099R, you won't enter that into the program. When you prepare your state return, the taxable amount of that distribution should automatically flow to your state return. 

To clarify, what state are you preparing? 

[lw-johnston]

Wisconsin

[SteamTrain]

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.