Form 1099-R (MLC): Box 12a For electronic filing, New York State withholdings can not be greater than or equal to gross distribution or state distribution. Box 12a

[a-baxter1]

I filled mine out exactly how it is on my 1099-R and I keep getting this error. For me it was 5.00. What could I be doing wrong?

[JulieS]

You aren't doing anything wrong, but the tax withheld can't be more than the distribution. 

Sometimes, there is a number in box 12, and box 14 is blank, that will cause an error, because the tax withheld from a distribution can't be more than the distribution.

If this is the case, fill in box 12 and 13 as they are on the 1099-R form, and enter the number from box 2a in box 14. 
 

[a-baxter1]

Thank you for the reply, and that would make sense. On my form it shows:

2a - empty 

12- 5.00

13 - State/Payers state no

14 - empty

[a-baxter1]

Any other suggestions?

[JulieS]

Is the distribution really not taxable, or did the payer just leave it to you to determine whether it is taxable?

Box 14 should be the taxable amount of the distribution, even if that is not shown on line 2a.

If the distribution is truly tax free, no amount should be withheld for state tax. 

[a-baxter1]

I would believe that the distribution would be taxable. I'm not sure if the payer left it up to me, I'm just looking at the form that was sent to me from Merrill Lynch.

[AmyC]

If you are unsure of the taxable amount, you can contact your broker. Once you have the taxable state amount, just use the taxable amount in the state distribution box.

[a-baxter1]

I finally got the explaination that I needed from TurboTax:

"The NY e-file system has a problem that has existed for 3 years now.  It refuses to accept a standard 1099-R form that is a industrial standard that when there is only ONE state tax withheld in box 12 then box 14 is left bank and it is understood that the state distribution  is the same as the Federal box 1 distribution so it does not need to be entered in box 14.   (Box 14 is only used if there are 2 states in box 12a and 12b then box 14 tells the distribution  for each).

NY INSISTS that box 14 must not be blank.

To satisfy NY simply enter the box 1 amount in box 14 and NY will be happy and it will not affect anything else."

[bbot]

Thank you for explanation. However, I cannot seem to edit  Box 14 with the value from Box 1. It seems to be ReadOnly. Any suggestions? Thanks.

[bbot]

Hi. I discovered the answer! I have to modify the Fed 1099-r (I was trying to modify the State's 1099-R , which was a copy and hence read-only). 

Bottom Line: your answer was correct - put Distribution value from Box 1 into Box 14 on the Fed 1099-R, and the it will flow thru to the NewYork state form 1099-R in TurboTax. I did that and TT did not complain (plus I verified it in the generated form) .

Thanks so much for the help!

[MsAmericat]

This was a complete nightmare. There is no way I could get around that prompt. I'll have to mail it in.

What a mess...

Never had such trouble with Turbo Tax before. Total disappointment.

[barbredhook]

None of the suggestions worked.....this is so upsetting as I finally made myself try Turbo Tax and already spent the $$ and now I won't be able to file this way.

[barbredhook]

I put the gross distribution into the state distribution box and so far the error went away.....It's too bad we can't see the forms develop as we go.....that would help a lost.  FINGERS CROSSED that I will get forms now.  Yes, I got forms and the state withholding is accurate.....I guess I will never pay money to Turbo Tax for this much angst again.