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New Member
posted Mar 26, 2024 8:53:28 PM

I imported my 1099-R and am getting a "State tax shouldn't be greater than gross distribution" error. Boxes 1, 2a and 16 all reported the same amount and Box 14 is less.

This is for a New York 1099-R and there was state tax withheld. Boxes 15 and 16 have information. I've tried importing and manually uploading this document but still get the same error when Box 14 is populated.

0 4 2863
4 Replies
Expert Alumni
Mar 27, 2024 6:16:03 AM

Sometimes the best way to correct this experience is to delete the 1099-R entry and choose the "Type it in myself' option. 

 

Use the "Delete a Form" option in online products (steps below) or the "Forms Mode" in desktop (CD/Download) products to delete the form 1099-R. 

 

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "Delete a Form"
4. Find the 1099-R
5. "Delete"
6. "Confirm Deletion"

 

After deleting the 1099-R navigate to (or jump to using the search icon) the "IRA, Pension Plans...1099-R" topic in the "Wages & Income" section.  

 

Add a 1099-R>Change how I enter my form>type it in myself 

 

Type in the form information and continue to complete the section. 

New Member
Mar 27, 2024 6:37:49 AM

I did try deleting the form and entering it myself as well (because when uploaded from the linked site or via dropping the form into the upload box, it created two 1099-Rs, assuming one for Copy B and one for Copy C, even though I have only one form). That still resulted in the same error.

Expert Alumni
Mar 28, 2024 10:11:11 AM

Delete any extra forms. Try leaving box 14 blank, just to see if the program still gives the error. Then try $1 and see what happens. I am sure you are double checking box 16 has the distribution.  Try going to review with each of these options and let's see if we can get the error to clear up. Then you can add the tax withheld to box 14 and try again.

New Member
Mar 29, 2024 7:51:04 PM

The only way I could get around this was to leave the 1099-R with the "Needs Review" error. I was able to submit the form with the numbers matching the 1099-R received/uploaded as long as I didn't open and review it again.