Is it correct to consider only the state tax withheld amount from W2 and not adding the amount from 1099R when calculating the deduction for state tax or sales tax?

[ashimghosh]

I had a large amount of State Tax withheld in one of my 1099R and a smaller amount withheld on my w2. When calculating the federal tax, the software is only considering the amount reported in my w2 and ignoring the amount in 1099R. This is important for me to decide whether to take the State tax deduction or Sales tax deduction. Is this correct? Shouldn't the correct amount of state tax withheld be the total of both amounts shown in W2 and 1099R?

[PaulaM · Accepted solution]

Yes, you should consider the total amount withheld from both W-2 and the 1099-R. You can adjust this in the Other Income Tax section.

• In your open return, select My Account
• Tools
• Topic Search
• Type 'Other withholding' in the box, then select GO

Scroll to the bottom of the landing page, then select 'Withholding not already entered on a W-2 or 1099'. See attached.