Form 1099-R states NYS withholdings cannot be greater than or equal to gross distribution. However, the amount is less. The the state tax is 28.00.

[AnnetteB]

The message is trying to say that there should not be any state taxes withheld (Box 12) if there was not a state distribution (Box 14). 

To correct it, you need to Edit any Form 1099-R that shows an amount in Box 12 for state taxes withheld.  If Box 14 is blank or zero, enter the amount shown in Box 1 into Box 14 also. 

Use these steps to go directly to a list of your Form 1099-R entries and Edit them one at a time to correct the error:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “1099-R” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to 1099-R”

• Click on the blue “Jump to 1099-R” link

[grandpaknei]

Turbo Tax should not prevent me from filing for my 2020 federal refund due to bug in the state software.
1099-R's for New York state pension says "EXEMPT" in capital letters in box 14 and 16 is blank because ALL of a New York state pension is exempt from state tax.
Turbo Tax erroneously reports an error: that Box 14a withholdings can not be greater than or equal to gross distribution or state distribution, NO MATTER what is in those boxes.
I wasn't a math major, but 0 is less than any other positive number. If I put in $0.00 withheld in box 14 and $35,000.00 state distribution in box 16,
Turbo Tax should not generate an error as it is doing that says "withholdings can not be greater than or equal to state distribution".
0 is less than any other positive number.

[Irene2805]

On your 1099-R, since the NY pension is not taxable, leave boxes 14, 15, and 16 blank.  This should prevent the error messages and let you e-file your return.

@grandpaknei

[grandpaknei]

Thanks Irene. Since Turbo Tax filled in the State and State ID automatically I did not think to blank out box 15. Also shame on me for not noticing that the state id number provided didn't match the one on the paper 1099-R. I have for years left 14 and 16 blank based on Turbo Tax help notes. I hope the notes are as clear as you were if box 14 says exempt: “leave eave boxes 14, 15, and 16 blank.”

To be specific, what worked for me was to go to forms immediately upon starting TurboTax and blanked out those boxes in the 1099-R and was then able to proceed with filing without any other re-entry of data.

[kim711]

I am getting an error message that says 14a should not be greater than gross distribution. it is not. Box 14 (there is no box 14a on the 1099R) has $40.00 but Box 1 has $778.40. This error is happening on multiple 1099 entries and will not let me file federal return electronically. How do i fix?

[macuser_22]

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@kim711 wrote:

I am getting an error message that says 14a should not be greater than gross distribution. it is not. Box 14 (there is no box 14a on the 1099R) has $40.00 but Box 1 has $778.40. This error is happening on multiple 1099 entries and will not let me file federal return electronically. How do i fix?

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Let me guess - it is probably NY.

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.

[grandpaknei]

1099 field box numbers may vary from one type to another.
I suggest leaving step-by-step and going to Forms to find the 1099 Tutrbotax created for you.
Look for the labels that pertain to this error:
x. state tax withheld ($40 in your example)
y. state & state id (must be filled in)
z . state distribution (amount you received subject to tax in this state,)
turbotax's checksum says you can't have paid more in tax than the income you received,
in their words:
"withholdings can not be greater than or equal to gross distribution or state distribution"
your error seems to be not filling in box Z,
which in your example, probably would be the total amount received from box 1
the error I encountered was filling in box Y with a state and leaving x and z blank
which resulted in turbo tax saying that 0 in X is greater than or equal to 0 in Z

[grandpaknei]

1099 field box numbers may vary from one type to another.
I suggest leaving step-by-step and going to Forms to find the 1099 Turbo tax created for you.
Look for the labels that pertain to this error:
x. state tax withheld ($40 in your example)
y. state & state id (must be filled in)
z . state distribution (amount you received subject to tax in this state,)
 turbo tax's checksum says you can't have paid more in tax than the income you received,
in their words:
"withholdings can not be greater than or equal to gross distribution or state distribution"
your error seems to be not filling in box Z,
which in your example, probably would be the total amount received from box 1
the error I encountered was filling in box Y with a state and leaving x and z blank
which resulted in turbo tax saying that 0 in X is greater than or equal to 0 in Z

[SamS1]

Yes.  For NYS you need to include the box 1 amount in box 16 to clear the error.  The If you inputted a 1099R for NYS with only box 14, go back and edit the 1099R to include amount in box 16.  If you are in Desktop, go into "Forms" mode and review the 1099R. While in your return in Desktop:

1. In the upper right hand corner Select "Forms"
2. Now in the left hand column of the screen, select the 1099R form you are working on
3. Review your input then scroll down to the State section and complete boxes 14-16.

While in Forms Mode review the forms listing for red !. You will need to correct these in order to efile.

The 1099 Series are informational reporting forms submitted to the IRS by third parties. The IRS then matches the form information to your tax return to insure all income is reported and taxed. If you do not include a 1099 received from a third party on your tax return, you will receive a notice from the IRS asking why. This is the CP2000 matching notice. If you receive this notice from the IRS, make sure and respond by the date indicate on the notice.

[Marty200]

1099-R has no box 14a.  Turbo Tax won't file when no entry

[macuser_22]

If there is no dollar amount in box 14 (state tax withheld) then all boxes 14-16 must be blank - not zero.

[IM10]

In order to file, I had to  leave blank lines 14,15, and 16. However, $60 were withheld from my payment, as shown on Vanguard 1099-R form. Once I entered 0 on line 14, my NY state tax return was reduced by $60. Seems unfair that I lost $60 because of the glitch in the TurboTax.

[macuser_22]

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@IM10 wrote:

In order to file, I had to  leave blank lines 14,15, and 16. However, $60 were withheld from my payment, as shown on Vanguard 1099-R form. Once I entered 0 on line 14, my NY state tax return was reduced by $60. Seems unfair that I lost $60 because of the glitch in the TurboTax.

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If there was tax withholding in box 14 then it must be entered along with the state ID and box 15 information.  Box 16 for NY MUST be the same as box 1, some 1099-R issuers  leave it blank because it is understood that it is the same as box 1 if only one state but NY insists that it have the box 1 amount.

There is no TurboTax "glitch", NY is the only state that rejects if box 16 is blank.  It is NY that does not follow the 1099-R industrial standards.

[adrianna22m]

Thank you, I was also struggling with this while trying to file my NY taxes. Putting the gross distribution amount in Box 16 was all I needed to do to get it to go through.