My 1099-R is missing box 16 because it's not applicable but Turbo Tax insists I have to have it as it can't be greater or equal to gross distro or state distro. Why?

[rajalia]

Wife cashed out her 403B. The 1099-R she got does not have a Box 16. on the back it states box 16 isn't there because it isn't applicable but Turbo Tax says said box can't be greater than or equal to gross distribution or state distribution.

[MarilynG1]

Is there State Tax shown in Box 14 of the 1099-R?  If not, you can leave boxes 14, 15 and 16 blank.  Your state will tax the income imported from your Federal return.

If there is tax shown in Box 14, then Box 15 should show the State Payer's No (you can use the Federal ID number if it's blank) and Box 16 should show the same amount as the Box 1, Gross Distribution, unless there is a different amount showing in Box 2a. 

Here's How to Enter 1099-R.

[cindyohio1]

Regarding:  unless there is a different amount showing in Box 2a. 

What then?   Use Box 2a amount for the missing box 16?

[DianeW777]

No. If you do not have state entries on your Form 1099-R then you do not need to enter any amount in the state information boxes as indicated by our Tax Expert MarilynJoy.

When you are in the entry screen for the Form 1099-R, be sure to use the delete key to remove any potential entry (box 14, 15, 16).  If you have the same experience you should perform the following step.

Clear your cache and cookies. It handles many issues that seem nonsensical on a regular basis. 

• Close your TurboTax return first.

Watch to be sure you are selecting 'all time' as example.  Do not use selections like 'last hour' for those browsers that give  you options.

• How to clear your cache

Sign back into your return to review and complete your tax return.  Please update if you have more questions.

@cindyohio1 

[cindyohio1]

Thanks for looking into this.

I do have entries in box 14 and 15.   The form does not contain a box 16 but TurboTax insists it must be entered when I submit the form.

[AmyC]

On your 1099R, you have actual tax paid to your state so you don't want blanks. If not, blanks are fine for 14-16. So, box 14, shows state tax withheld, box 15, state and payer id, box 16 is blank. This must be because your box 1 and 2 are different numbers and the issuer is not sure how much is actually taxable with a check in 2b or your state may exempt the income, partially or in full.

You want to go ahead and enter the amount you believe would be the taxable distribution. The program will help you exempt any amounts to which you are entitled. The state tax will be applied as it should.

@cindyohio1 

[3rd]

Turbo tax lists the error on my Ohio returns, How do I resolve this issue?

[AmyC]

Do you have anything in the state section? If so, box 16 needs a number. If it is not applicable, then all state boxes, 14, 15, and 16 should be blank.

@3rd