topic Re: 1099 Box 16 entry in Retirement tax questions

1099 Box 16 entry

JSRRETIRED — Mon, 10 Feb 2025 20:47:32 GMT

There have been many TT customers complaining that the 2024 Deluxe program will not allow the Federal filing process to occur if Form 1099-R, Box 16 contains a figure less than Box 14. (In my case, Box 16 has always shown $0.00, and therefore has always been less than whatever has been in Box 14.) The suggested "fix" for this has been to enter the amount from Box 1 or Box 2a into Box 16, then TT will release its grip on your return and allow it to be filed. To me this "fix" violates the rules which state that we should always enter 1099 figures exactly as they are shown.

While TT is pondering how to repair this glitch, are there any IRS employees or family members out there who can assure all of us that such a work-around is okay in their eyes?

Re: 1099 Box 16 entry

RobertB4444 — Mon, 10 Feb 2025 22:19:47 GMT

Box 14 represents taxes withheld for the state and box 16 represents the amount that is taxable to the state. If there are taxes being taken out for the state then the taxes must be taken out of a larger amount for which tax is due. That amount should be in box 16 and should be the same as the amount in either box 1 or box 2a.

When issuing a 1099-R there are several states that don't have any state taxes - in those cases there should be no information entered for boxes 14,15 or 16 anyway.

But if there is tax being withheld in box 14 then it has to be being withheld from a larger taxable amount in box 16. Without it the math doesn't make sense. So the program has to ask it.

@JSRRETIRED