TurboTax Premier Desktop Oklahoma State e-file doesn't include a copy of 1099-R as Oklahoma requires to process the return.

[1997retird]

How can I add the copy of 1099-R to the e-file?  Oklahoma requires a copy and each year I get a  nasty Letter requesting the 1099-R so they can process the e-filed return. Seems the 1099-R information placed in the Federal Return doesn't get transfered to the Oklahoma return as Oklahoma requires a copy. 

[MaryK4]

Efiled returns are electronic files.  They are NOT the paper copies that you see for your records so there is no "attaching" a paper 1099-R.   

The Oklahoma Tax Commission (OTC), in conjunction with the Internal Revenue Service (IRS), accepts returns filed through the Modernized e-File system (MeF). This transmission method is a web service using Simple Object Access Protocol (SOAP) with attachments messaging capability. State returns are submitted as linked to the IRS submissions (also referred to as a Fed/State return).  Oklahoma Tax Commission's Electronic Filer Handbook, p.2

[1997retird]

Thanks for the reply.  I guess I can't continue to e-file, as I have done for many years until this issue came up in 2024, as the copy of the 1099-R must be sent in order for them to process the return.

On the Form 511 (Oklahoma form that was e-filed) it plainly states under Part 3 Tax Credits and Payments line 21 : (enclose all W-2's, 1099's or other witholding statements).

I would think TurboTax, at least, should add a way to attach the document Oklahoma requires to process the return. Years ago Turbotax e-file for Oklahoma included the federal return which had the W-2's, 1099's etc for Oklahoma Tax Commission to see but not anymore.

[dmertz]

Given that nobody else has mentioned this issue, this seems to be unique to your situation.  The Oklahoma instructions indicate to include Forms 1099-R that show state tax withholding.  If there is no state tax withholding, there appears to be no requirement to include the form.  TurboTax includes in the e-filing Forms 1099-R that shows this withholding.  The only reason that I can see that Oklahoma would request a paper copy is if the amount of tax withholding shown in your Oklahoma tax account disagrees with what you have reported as withholding on line 21 of your Oklahoma Form 511.

If you make estimated tax payments to Oklahoma, make sure that you are not reporting them as tax withholding.  Estimated tax payments are to be reported as estimated tax payments on line 22 of Form 511.  Also make sure that the Form 1099-R provided by the payer shows your correct SSN, the same SSN that is on your tax return.

[1997retird]

Thx for the reply.  The amount shown on the original 1099-R is the exact amount shown on Line 21 of Oklahoma Form 511. The letter from Oklahoma Tax Commission requesting a 1099-R in order to process the rerturn also stated they cannot verify the withholding amount claimed on the return. I guess that is because they require the 1099-R to verify the amount claimed and e-file doesn't provide the 1099-R. Not etimated tax and SS number is correct,.

Just like last year I provided them what the letter requested and just like last year my return was processed. I just received my direct deposit of the refund yesterday.

[dmertz]

I wonder if this happens if you file before Oklahoma receives a copy of the Form 1099-R from the payer.  The deadline for the payer to file Forms 1099-R with the IRS (and presumably Oklahoma as well) is generally the end of March if they file electronically.  In that case, perhaps they question a nonzero amount if is not equal to 4.75% of the distribution amount for nonperiodic distributions or the amount specified by state wage tables for periodic distributions.

You might avoid the need to send paper forms is you file after the end of March.  You might also consider declining state tax withholding and making estimated tax payments, but that might be more of an inconvenience.

[1997retird]

Yes, I am going to call the Oklahoma State Pension & Retirement System that issued the 1099-R and verify when they transmit the data to the Tax Commission. I always file in early February and have for more than 30 years without issue until 2024. Next step after that is to talk to the Tax Commission and see where the breakdown is at, Turbo Tax e-file, Pension System, Tax Commission, etc.

Side note:  I use the Guided TurboTax function and always have. Data gets transfered into the Oklahoma Tax Return by Turbo Tax and I verify it is correct. I never have had to add anything, or change anything, to what TurboTax put into the Oklahoma tax return and TurboTax finds no errors in both the Federal and State returns.

THX for helping..... will appreciate any further info....

[1997retird]

OK....

Checked with Oklahoma Tax Commission about the letter and when they get the data from the relevant Oklahoma State Pension & Retirement System that generated the 1099-R.  The answer was that this letter is getting more prevalent. The call taker doesn't have access to check whether the Tax Commission received the data and if so when they received it.  

Contacted the relevant State Pension & Retirement System and was told the data was sent to the Tax Commission mid-January 2026 and verified before the 1099-Rs' were mailed out.

Note:  I did an AI search and the answer I got said the Online version of Turbotax has the ability to add documents to the Oklahoma State return. True or false I don't know as I never use online TurboTax. I wonder as AI also said the desktop version of TurboTax has that ability too.

[1997retird]

Just wanted to post my evaluation of this issue and make a suggestion I hope TurboTax will consider.

When completing entry information for the Federal return one completes forms such as Form 1099, W-2, etc. That form can be viewed in TurboTax and the related data transfers to the proper place in the Federal Return as nessary.  Some of the data on the form also transfers to the State Return but the actual completed form does not transfer. 

Oklahoma Form 511 line 21 specificaly states the form 1099, W-2 etc. be enclosed with the Form 511 but it is not included and e-filed to the Oklahoma Tax Commission thus the e-file generated doesn't provide what is required by the Oklahoma Tax Commission.

Am I upset?    NO I'M NOT...  I have used Turbo Tax for over 30 Years and will continue.

I offer these thoughts in hope that TurboTax can visit with the Oklahoma Tax Commission and can just transfer from the Federal side of TurboTax the 1099, W-2, and etc forms to the Oklahoma State side of TurboTax to be included in the e-file process so the Oklahoma Tax Commission can receive what they require.

Thanks to all who have commented and for the input and suggestions.  I would hope to get a response from TurboTax here as that response I would mark as the best answer.

THX again all...........

[dmertz]

Page 26 of the Oklahoma Instructions says, "Provide W-2s, 1099s, or other withholding statements to substantiate withholding," implying that only Forms 1099-R that show state tax withholding are required to be included with your filing.  If they wanted all Forms W-2 and 1099 to be included, they should have omitted "to substantiate withholding."

[1997retird]

Yes only forms such as 1099's and etc. that show witholdings are required to be provided. That's all the letter asked for. I had no W-2 etc. but had numerous 1099's but the only 1099 that had taxes taken out was the one they wanted. They asked for the same thing last year in a letter.

I will take a photo of the letter(redacted) and post in this message if I can.

[dmertz]

I refer back to what I said earlier.  TurboTax does include the details in the e-filing, but it's likely that they know that these details can simply come from what the TurboTax user entered, so they are understandably skeptical if they are processing the tax return before they have received their copy of the Form 1099-R directly from the payer, even more so if the amount of state tax withholding does not conform to the default withholding.

[1997retird]

From my previous post.....They had the 1099 data mid January and was verified before the 1099's were mailed. I will add that I called TurboTax in February about this issue and the call taker created a Case Number and was passing this up the chain. She took my phone number in case TT wanted more info. Several days later the case was closed. 

case

1771592610028

closed Feb.23