State taxes were withheld from Retirement Plan distribution. State does not tax these distributions. Where do I show the State Tax withheld on my return?

[MichaelL1]

When you enter the 1099R in the Federal section and then the entries that are in box 12 (State Income Tax withheld) will flow to the State return and you will get credit for these taxes withheld.

I would, however, talk to the custodian of the Retirement Account and have them stop taking out state income taxes if it is not taxed by your state. 

 To enter pension and annuity Payments (1099-R)

• Click on Federal Taxes
• Click on Wages and Income
• Click on I'll choose what I work on (if shown)
• Scroll down to Retirement Plans and Social Security
• On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

[sterlingbev]

Box 12 is FATC filling requirement, Box 14 says state tax withheld. I put the amount withheld nothing happens, it doesn't lower the amount to pay in state taxes. Federal works fine. Not sure what I am doing wrong>

Thank you for your time

[SteamTrain]

@sterlingbev 

This post is from 2018 year's taxes, or possibly even earlier....box 12 for state taxes withheld and referred to in the answer above was for a 1099-R form from a prior year....and NOT 2020.  So you need to pay closed attention to exactly when a Question & Answer is posted, before taking it's advice. 

For 2020, the 1099-R forms moved the state taxes withheld to another box , box 14 as you have noted.

Beyond that:  Whether a box 14 on a 1099-R does anything on your state tax return (yet) may depend on how far along the state software is for your state .  Every state software set has a different set of programmers, and different complications/updates to deal with.  Thus, many state software sets will not be significantly ready until later in January......and several updates will be needed before the numbers will be accurately reflected in the currently unfinished software.  

So, take out the withholding for your state on that form now.....and try it again in Say) the last week in January to see what happens ( if using the desktop software...you've updated it regularly every Friday)....and sometimes numbers don't move either until you've gone thru the interview on the pages that follow the main 1099-R forms, since certain situations can affect the final amounts.

[sterlingbev]

Thank You Steam Train