WI state and 1099R

[rk38]

Looking for help with ensuring WI state gets 1099R distribution from my input in federal.  The 1099R is blank in lines 15 and 16 and when I reached out to the institution, they indicated that this is correct and that when I get to TurboTax WI state, it will have me enter the 1099R distribution. Any help is appreciated. 

[MaryK4]

Can you clarify your question? Do you have a state withheld amount in Box 14?  Thanks!  @rk38 

[rk38]

No. Box 14 is blank. 

[MaryK4]

Thank you, so you can enter the 1099-R as you have it and TurboTax will assign it to your resident state of Wisconsin based on your entry in the Personal Info section.  The retirement issuer would only use Boxes 14-15-16 if you requested tax withholding for the state.  Retirement income is taxable by your resident state so you do not have to indicate what state- although if there is any special handling information that is needed, TurboTax will ask you after you enter the 1099-R.  @rk38  

I also saw that you had an inherited 1099-R from New York- this too will be taxed by your resident state of Wisconsin.

[rk38]

Appreciate the info on both.  Do you know for over age 67, will turbotax for WI state go through questions allowing for tax  relief of $24K on retirement distributions with the new tax laws effective 2025?

[MaryK4]

Yes, TurboTax has been updated to include the in the Wisconsin section, look for "Income Adjustments" to find the "Retirement Benefit Adjustments" line. @rk38 

Starting with the 2025 taxable year, individuals who are at least 67 years of age before the close of the taxable year may subtract up to $24,000 of qualifying retirement income received. A married couple who file a joint return and are both at least 67 years old at the close of the taxable year may subtract up to $48,000 of qualifying retirement income, regardless of how much retirement income each spouse received.

See Pub 126 How Your Retirement Benefits Are Taxed

[rk38]

Thanks.  If there are non deductible contributions made in traditional IRA and converted to Roth IRA will WI state recognize that distribution as already taxed like federal dues does?

[rk38]

I think I accidentally marked this thread as complete, but I did have the question above.