If a 1099R has an amount for Illinois (box 13 = IL), state tax withheld (box 12), the amount must be less than the amount for state distribution (box 14).. Help please.

[mrosenberg100]

I got the above message when I submitted my IL return. However the amount that was carried over was the one from line 11a on my Federal return. On one 1099 it shows zero in box 12 and the same amount in box 14 that is in Box 1 and 2. On my other 1099 boxes 12 - 14 are all blank. I'm not sure what amount if any I can enter in my IL return, as noted above Turbo Tax carried over the full amounts from both.

[macuser_22]

Box 14 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 12 & 13 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 14 is just left blank.

But recently, there are at least two states that will reject 1099-R's with a state tax and a blank box 14 so it is okay to enter the box 1 amount into box 14 to satisfy the states requirement.

However, if box 12 is blank (or zero) then there is not state tax withheld so ALL boxes 12-14 must be blank (empty) - not zero.

[mrosenberg100]

Thank you, however I'm still confused on what I can enter in IL return. As noted above one has zero's in box 12 but an amount in box 14. The other has blanks no values in 12 and 14, so is any of the amount on either of the 1099's usable in my IL return?

[macuser_22]

Like I said if there is a zero in box 12 - leave ALL boxed 12-14 BLANK.  

[mrosenberg100]

Sorry but when you say blank does that mean that I don't carry the dollar amounts to my IL since both of my 1099 box 12 are either zero or blank. Still a bit confused.

[macuser_22]

You make all 1099-R entries in the retirement 1099-R section for the Federal return.

Box 12 must either have a positive dollar amount greater then 50 cents or be blank (totally empty box).   If box 12 is blank then 13 & 14 must also be blank.

Any enter in box 13 or 14 implies that there must be tax withheld (greater then 50 cents) in box 12 or TurboTax will return an error.   If no tax in box12 then it is as if boxes 12-14 do not exist at all.

[mrosenberg100]

Turbotax didn't return an error, IL rejected it. So I'm just not sure if I can use any amount in my IL return. That is basically all I want to know what if any amount based on all of the above is valid entry on Line 5 in my IL return.

[macuser_22]

What is the IL reject code and what did it say?

Some states do not like a blank box 14.

[mrosenberg100]

"If a 1099R has an amount for Illinois (box 13 = IL), state tax withheld (box 12), the amount must be less than the amount for state distribution (box 14). "

This is the email I received from TurboTax when IL rejected it. Thank you for all your help.