If box 16 on the 1099-R is blank, how do you correct Form OR-40 and document that Oregon States taxes were withheld as shown on 1099-R?

[user6141620]

When using TurboTax for Oregon State Taxes, Oregon State Taxes withheld on 1099R is not showing up on my form OR-40. TurboTax support said box 16 on 1099-R has to be filled but it is blank on my 1099-R and Oregon does not require this to be filled.

[SteamTrain]

Oregon may not require it, but for the software to work properly, it needs a value there .

Just enter the box 2a $$ amount in box 16....that is IF.....if box 2a has a non-zero number in it.

Otherwise copy box 1 into box 16, as long as you had no "after tax" contributions to that retirement vehicle.

If you did have some After-Tax contributions to it, then you need to put the Federally-taxable portion of box 1 into box 16  (i.e, whatever the Feds included as taxable income)

Essentially the state software is saying that you can't have state taxes withheld from nothing.

Yes, many providers of 1099-R forms always leave box 16 empty, apparently for a few reasons....but some software for some states require a number in there for the software to work correctly.

[user6141620]

Thank you for the advice and help if the 1099-R box 16 is left blank. One does have to fill box 16 in for the amount shown in 2a. Oregon does not require box 16 to be filled. Your explanation was very helpful!

There is still a glitch in TurboTax for customers completing State taxes for Oregon. Oregon state taxes withheld on a 1099-R  do not transfer when doing Oregon State taxes.

There is no drop down menu to indicate that Oregon state taxes were already paid for an RMD for the state of Oregon. To solve the problem I had to list the Oregon state taxes already paid for a RMD as coming from another state. I hope TurboTax fixes the software for Oregon Staye taxes.

[SteamTrain]

@user6141620 

IF the state taxes withheld for OR did not transfer to the OR forms (they should just add into the total state withholding) even if they have been properly entered in box 14 of that 1099-R..

THEN....You really should call Customer Support to report the problem...it won't get fixed unless someone there confirms the problem.

But, make absolutely sure those $$ have not already added into line 32 of the main Oregon form OR-40  first.

How do I contact TurboTax?

[user6141620]

Hi,

Thank you for your reply, help, and recommendations. I am very appreciative.

While logged in and doing my taxes, I did contact TurboTax twice by phone 1-800-446-8848 on 3/15/25 and spoke with two support representatives about the problem.

1. The first one required the support of her specialist and said the problem was only due to box 16 being left empty on the 1099R and that it was the fault of the investment firm that generated the 1099R.

I securely shared my screen to show all the problems that the Oregon tax paid from a 1099R is not carried over. I also showed the specialist that the only way I found was to report the taxes already paid for Oregon as shown on the 1099R as taxes paid to another State.

2. I called Fidelity Investments and they said they do not fill in box 16 and the State of Oregon does not require it.

3. I read on line about the problem with a blank box 16 on a 1099R when using TurboTax. I posted the problem with the Intuit community.

4. I re-logged in to TurboTax to work on the taxes and on the 1099R used  the $ amount shown in 2a to fill in box 16. That did not make a difference in anything in the TurboTax software for carrying over the state taxes already paid from the 1099R. 

 5.  I contacted TurboTax by phone again and spoke to a second specialist who was very helpful. I shared my TurboTax screen only and I showed the representative everything:  a) problem with box 16 on the 1099R being blank but needing to be filled in and b)  the problem with  TurboTax software for Oregon State taxes not carrying over state taxes  already paid from  the 1099R box 14.

The representative and I found that the only way to document when doing Oregon State Tax return using TurboTax was to write in the amount of  Oregon State taxes withheld from the 1099R  as being tax exes by another state. 

We used tax tools to make sure that Oregon income tax held from the W2 and  listed in box 14 of the 1099R added up correctly.

I asked this representative to report the software problems for state taxes to TurboTax.