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donh789
New Member

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

 
10 Replies
Critter1
New Member

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

The form 1099R is entered in the program leaving the box 2a blank just like the paper form. Then the follow up interview questions are answered to determine how much of the distribution is taxable. 

Anita01
New Member

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

The box for taxable amount not determined should also be checked unless this is a CSA 1099.  Unless you indicate otherwise when answering the follow up questions, the full amount would be taxable.

Hal_Al
Level 15

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

The full amount in box 1 is taxable, unless YOU know some reason it isn't; which you will tell TurboTax in the interview following entering the 1099-R. The only time a 1099-R is not taxable is when you made after-tax contributions to the account paying the distribution. The most common example is non-deductible contributions to an IRA.

msnelson008
Level 1

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

I wonder if I can get a little assistance with this matter. I have a 1099-R (Distribution Code 3), my retirement income is non-taxable as I was an combat injured veteran. But for some stupid reason I decided a couple years ago to have $225 taken out of each check to cover my Georgia taxes and forgot I had done that. Now when I try to file a 1099-R online, I get an error message stating I must have gross proceeds must be greater than the state tax withheld. At this point, I've given away $6075+ and have no idea how to get it back aside from filing my taxes by paper. Any assistance would be greatly appreciated. 

MarilynG1
Expert Alumni

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

@msnelson008 If the amount in Box 1 of your 1099-R is larger than the State Tax Withheld amount, this should not cause an error, even if the amount in Box 1 is Non-Taxable.

 

Try entering the amount in Box 1 in the 'State Distribution Amount' field of your 1099-R entry to see if this resolves your issue. 

 

Click this link for more info from others on the Gross Proceeds Must be Greater than State Tax error. 

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msnelson008
Level 1

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

Thank you for the quick response.  My 1099-R, Box 1 states "$0.00," and Box 14 states "$2,700." That was the additional tax money ($225/month) I like an idiot in my poor mental & emotional state voluntary gave the state of Georgia because I did not know my military retirement was tax-free. The problem is, the tax software says, you can't have taxes on zero income. 

 

Cheers,

Marvin

MarilynG1
Expert Alumni

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

No, you are correct, you can't report your 1099-R in your Federal Return to claim State Tax Paid with $0 in Box 1. 

 

Unless you are filing Itemized Deductions, you wouldn't get a deduction for them anyway. 

 

However, you should be able to claim State Tax Paid on your Georgia State Return.

 

You may need to add them under 'Other Deductions' or some similar heading as you go through your State Return Interview.

 

I hope you have notified your Payor to stop withholding these taxes going forward. 

 

Click this link for more info that may help you with Georgia Military Benefits.

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msnelson008
Level 1

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

Thank you again for the quick response and your answer was most helpful this time! I will definitely look into that option I did not consider. Thank you for your time and have a wonderful 2021!!!

VR,

Marvin

msnelson008
Level 1

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

Hi, me again! 

 

Just to follow up, I itemize my deductions to a tune of about $22K-$25K per year and claim head of household with two dependents. Each year I receive a tax refund anywhere from $7K-$10K federal and $600-$1.2K state.  I took your advice and was able to add the $2700 to my federal & state, but my refund only increased $800 instead of the $2700 on state, which I already over paid and nothing happened on my federal. In my head, since I over paid on both and am receiving refunds this year, my federal should go up slightly and my state should go up $2700 since no additional income was added. I was wondering if you had any advice for that. Thanks. 

MarilynG1
Expert Alumni

When a taxpayer receives form 1099R with no amount entered in box 2a and a 7 in box 7 the entire distribution is handled how?

@msnelson008  Yes, it does sound like your Georgia Refund would have gone up significantly.

 

If you are using the Desktop product, you can view the calculations on the worksheets in Forms mode.

 

In TTO, if you View/Print/Save your return, you can view the worksheets. 

 

Since we can't actually see your tax return in this forum, you might consider requesting a Line by Line Review if you can't resolve this. 

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