1099-R IRA distribution beneficiary box 12a

[amandaf730]

This section keeps "needing my review" 

On my hard copy 1099-R form I received in the mail I don't have a 12a box. I only have a 12 box which is "FATCA filing requirement" and the box is not checked. I have a dollar amount in box 1 "gross distribution". I also have a dollar amount in box 14 witch is less then the amount in box 1. 

Now on Turbo Tax "Check this Entry" 

"Form 1099-R (Wells Fargo Clearing Services, LLC): Box 12a For electronic filing, New York State withholdings can not be greater than or equal to gross distribution or state distribution. " Then it says box 12a is the same dollar amount that is in box 14 which is way less than the gross distribution. 

I don't know what to do because I don't have a 12a box on my hard copy. When I delete the amount in box 12a on my computer it drops by state refund down by $693!! 

Please HELP 

[macuser_22]

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@amandaf730 wrote:

This section keeps "needing my review" 

On my hard copy 1099-R form I received in the mail I don't have a 12a box. I only have a 12 box which is "FATCA filing requirement" and the box is not checked. I have a dollar amount in box 1 "gross distribution". I also have a dollar amount in box 14 witch is less then the amount in box 1. 

Now on Turbo Tax "Check this Entry" 

"Form 1099-R (Wells Fargo Clearing Services, LLC): Box 12a For electronic filing, New York State withholdings can not be greater than or equal to gross distribution or state distribution. " Then it says box 12a is the same dollar amount that is in box 14 which is way less than the gross distribution. 

I don't know what to do because I don't have a 12a box on my hard copy. When I delete the amount in box 12a on my computer it drops by state refund down by $693!! 

Please HELP 

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The IRS added 2 boxes the the 1099-R form  for 2020.   The old box 12-14 are now box 14-16.     Evidently TurboTax has not changed the wording in the error message to reflect the new box numbers.    It should say that box 14 cannot be greater then box 16.     Simply a labeling issue.

Just make box 16 the same a box 1 to fix it - this is a NY software issue.

NOTE: prior to 2020 the state tax was in boxes 12-14, 2020 renumbered those boxes to 14-16.

Box 16 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 14 & 15 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 16 is just left blank.

But recently, there are at least two states (one being NY) that will reject 1099-R's with a state tax and a blank box 16 so it is okay to enter the box 1 amount into box 16 to satisfy the states requirement.

[Layne24]

Followed these instructions and filled in Box 16 with the information in Box 1. New York state rejected it anyway.

I have no clue what to do now and Turbo Tax doesn't seem to have a clue either. 🙄

[Irene2805]

macuser_22 is correct.  The error message should say that box 14 (state tax withheld) cannot be greater then box 16 (the state distribution).  

Enter the following in Box 16:

• If Box 14 shows State Tax withheld, enter the amount in Box 1 (gross distribution);
• If Box 14 is blank or zero no state tax was withheld leave Boxes 14, 15 and 16 blank.

@Layne24  What error message did you receive?

[Layne24]

The only message I seem to be able to find is:

Description of error:

We've identified a potential issue in your New York tax return due to an error in our software.

Then there is a long and repetitious page that doesn't really tell me how to fix it.

Thanks for help!

[macuser_22]

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@Layne24 wrote:

The only message I seem to be able to find is:

Description of error:

We've identified a potential issue in your New York tax return due to an error in our software.

Then there is a long and repetitious page that doesn't really tell me how to fix it.

Thanks for help!

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Did you read my post above?   If this is NY and there is an dollar amount in box 14 then make box 16 the same as box 1. 

[Layne24]

I did that when I filed originally after researching the problem and New York rejected it.

[macuser_22]

What is the exact reject message - could be a different reason?