Do I need to zero out Box 12a on my Form 1099-R.

[kim1558-]

Box 12a for electronic filing, NYS withholdings can not be greater than or equal to gross distribution or state distribution. I don't understand this

[macuser_22 · Accepted solution]

I assume that there IS a dollar amount in box 12.

The NY e-file system has a problem that has existed for 3 years now.  It refuses to accept a standard 1099-R form that is a industrial standard that when there is only ONE state tax withheld in box 12 then box 14 is left bank and it is understood that the state distribution  is the same as the Federal box 1 distribution so it does not need to be entered in box 14.   (Box 14 is only used if there are 2 states in box 12a and 12b then box 14 tells the distribution  for each).

NY INSISTS that box 14 must not be blank.

To satisfy NY simply enter the box 1 amount in box 14 and NY will be happy and it will not affect anything else.

[Clvinson]

The short answer to your question is No. I was unable to finds a box 12a on either of my forms 1099-R.

The issue is that the TurboTax error message should read that the "State Tax Withheld cannot be greater than or equal to  the Gross Distribution NOR (not "or")  the State Distribution".

This is key to understanding the TurboTax efile blockage since my 1099-R forms both downloaded into TurboTax with State Distribution boxes that were blank (that's box 16 on my 1099-R forms; not box 14 as some replies have indicated).

TurboTax appears to have a coding error and is checking both the Gross Distribution box and the State Distribution to see if the State Tax amount is greater than or equal to either. If the 1099-R State Distribution box is blank, TurboTax assumes a value of $0.00 and blocks efiling with the 1099-R error indication.

To fix this issue, in TurboTax, I returned to the Federal portion and edited both of my 1099-R downloaded forms to enter the value of the Gross Distribution box into the blank State Distribution box (again, this was box 16 on my 1099-R forms, not box 14). Once I did that for both of my 1099-R forms, I was able to efile.

[macuser_22]

@Clvinson 

This thread and question is a year old and about a 2019 1099-R.   For 2020 the IRS has renumbered the boxes on a 1099-R..

[latinoma]

I am filing 2020 and that came up.

[latinoma]

That worked!  Thanks

[DianeW777]

As indicated in an earlier post, try entering the state amount in your Forms 1099R which may eliminate the error if applicable.

Prior to 2020, Form 1099-R had an RMD date in Box 12, this has been removed.  For 2020, Box 12 is just a checkbox for U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938.

[TP-614]

Re. case number [social security number removed] as the Support ID

Perhaps it is a non-standard 1099-R form I have, but the line 12 (or 12a) are blank and should be.  Reference to line 12 confuses the issue.

Line 14 (State tax withheld) had an amount in it, as there was an amount withheld.

The problem was that line 16 (State distribution) was blank on the form I received, and line 16 should have the line 1 (Gross distribution) amount entered in it.

Hats off to Jasmine for sticking with me and resolving this issue. 

Hopefully something can be done, so other New Yorkers don't have this problem.  (Note, I've used TaxAct for years, line 16 of the 1099-R has been blank), and I haven't had this problem with their program, so maybe there is a way to fix it in Turbo Tax).

Thanks,

Tom Plantz

[macuser_22]

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@TP-614 wrote:

Re. case number [social security number removed] as the Support ID

Perhaps it is a non-standard 1099-R form I have, but the line 12 (or 12a) are blank and should be.  Reference to line 12 confuses the issue.

Line 14 (State tax withheld) had an amount in it, as there was an amount withheld.

The problem was that line 16 (State distribution) was blank on the form I received, and line 16 should have the line 1 (Gross distribution) amount entered in it.

Hats off to Jasmine for sticking with me and resolving this issue. 

Hopefully something can be done, so other New Yorkers don't have this problem.  (Note, I've used TaxAct for years, line 16 of the 1099-R has been blank), and I haven't had this problem with their program, so maybe there is a way to fix it in Turbo Tax).

Thanks,

Tom Plantz

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NOTE: prior to 2020 the state tax was in boxes 12-14, 2020 renumbered those boxes to 14-16.

Box 16 is not usually required because it has been an 1099-R industrial standard for many years that if there is only one state in box 14 & 15 then the box 1 amount does not need to be allocated between two states - the entire box 1 amount is understood to be the state distribution so box 16 is just left blank.

But recently, there are at least two states (one being NY) that will reject 1099-R's with a state tax and a blank box 16 so it is okay to enter the box 1 amount into box 16 to satisfy the states requirement.NOTE: prior to 2020 the state tax was in boxes 12-14, 2020 renumbered those boxes to 14-16.

[latinoma]

I did put the same number as box 1 in box 16 and my return was rejected ( only by NYS).  I also file in Connecticut and with the IRS and had no problem.  I have used Turbotax for over 10 years and I never had this problem.  I called in for help and "Lucy" went through my return and deleted line 14 and then Turbotax said there were no problems with my return.  She then said I could file.  I should have checked the return.  "Lucy' was very wrong.  As it turned out the state tax that we paid was no longer there and thus we did not get credit for it.  So now I have to file an amended return to get my $1600 back.  I am very disappointed with Turbotax that they can't figure this out and now I will have to file an amended return which I'm not sure will work either. I am ticked off that I waited on the phone for 35 minutes and then Lucy screws up my return. 

[macuser_22]

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@latinoma wrote:

I did put the same number as box 1 in box 16 and my return was rejected ( only by NYS).  I also file in Connecticut and with the IRS and had no problem.  I have used Turbotax for over 10 years and I never had this problem.  I called in for help and "Lucy" went through my return and deleted line 14 and then Turbotax said there were no problems with my return.  She then said I could file.  I should have checked the return.  "Lucy' was very wrong.  As it turned out the state tax that we paid was no longer there and thus we did not get credit for it.  So now I have to file an amended return to get my $1600 back.  I am very disappointed with Turbotax that they can't figure this out and now I will have to file an amended return which I'm not sure will work either. I am ticked off that I waited on the phone for 35 minutes and then Lucy screws up my return. 

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The actual problem is NY that wants something on the 1099-R that the issuer did not put there and should not be there.   If there is only one state then box 16 should be BLANK, but for some reason for the last 3 years NY insists that box 16 need something in it.  That is contrary to all other states and financial industry  practices.

TurboTax does it correctly - it is NY that is wrong. 

If there is a dollar amount in box 14 for NY withholding then for NY you must put the box 1 amount in box 16 to satisfy NY.    You do NOT make box 14 blank and box 15 must have "NY" and the payers state ID.

The phone rep probably did not understand that there actually was NY tax withholding in box 14.    The most common error of this type is when the insurer puts NY puts in box 15 and box 14 is blank or zero, then all boxes 14-16 must be blank.

[latinoma]

I am not saying NY is not at fault but my TurboTax help was wrong also.  If this has been going on for three years- why have I not had the problem before?  Also- I followed the rather obtuse instructions Turbotax gave as a workaround and that didn't help- I still got the error.  I then called TurboTax for help and they went through their instructions step by step with me ( on cobrowse) and they agreed I still had the "box 12A" problem.  That is when Lucy tried her "trick" of eliminating box 14.  So NY is screwed up and TurboTax help wasn't any better.

[macuser_22]

Like I said.  if there was actually NY tax withheld then you NEVER delete it form box 14 or you will not get credited for the tax.

You got bad advice.