Box 14A New York State withholdings can no be greater than or equal Gross Distribution or State Distribution (to Box 16.)

[kelvin8888ng]

In my case and others as well, this is erroring out at the stage when I am pressing Submit Returns. Why does it not error out way before to allow me to fix it?

I called the Turbotax rep (Fran-a male) today, and he wanted to dial into my PC to look. Heck no. Then he said to just enter the info from Box 1 as a work around. Also a no. 

Every time I log into TurboTax desktop software, I am forced to Update. Why is an update not available to fix this error that thousands of other people are having?

When I asked Fran this question, he conveniently dropped my call (you should be fired).

Can TurboTax fix this asap?

[AnnetteB6]

It is my understanding that this error check is in place only for certain states who require that an amount be placed in box 16 if there are withholdings present in box 14.  Box 15 for the state and state ID number will also need to be filled in.  Each state has its own specifications and error checks with regard to items reported with state information, and those requirements can change from year to year.  TurboTax just put this error check in place before you actually file the return so that it would not be rejected by the state and require you to fix it later.

Your actual state tax return is based on the information reported on your Federal return, so boxes 1 and 2 of your Form 1099-R are much more critical than box 16 with regard to your state return calculations.  

To remove the error condition and allow you to file your return electronically, enter the amount shown in box 1 into box 16.  Otherwise, you can file your return by mail.

[kelvin8888ng]

Thanks for the quick reply. So does that mean millions of New Yorkers have the same issue? If so, does it not make sense to have TurboTax fix this?

[AnnetteB6]

This is not something TurboTax can fix.  The error message is in place so that your state return will not be rejected when there is no value shown in box 16 and there is a value present in box 14a.  

The problem is with the financial institutions issuing the Form 1099-R showing state tax withholdings, but not including a value for the state distribution.  The state of New York electronic filing, and other states, requires that there be a value in both boxes if there is a value in the withholdings box.  Since your Form 1099-R does not have that, the problem lies with the issuer of the Form 1099-R.  

The inclusion of both state tax withholdings and state distributions on Form 1099-R is not consistent with companies who issue Form 1099-R and the IRS instructions for Form 1099-R do not specifically address this either.  

@kelvin8888ng 

[kelvin8888ng]

Thank you. May I suggest to TurboTax to put the error message earlier? It seems to me that I put the return in the mailbox, and the mailbox spit it back out with an error.

Thank you.