topic State Tax Withheld/State Distribution in Retirement tax questions

State Tax Withheld/State Distribution

ca2025 — Wed, 19 Mar 2025 15:21:40 GMT

TurboTax can't file my federal return because line 14 of my 1099-R shows an amount for state tax withheld and line 16 shows no state distribution.

My financial advisor assumes that the wrong box is checked (Roth IRA versus traditional IRA). I don't believe that is the case but not sure about next steps!

Re: State Tax Withheld/State Distribution

MinhT1 — Wed, 19 Mar 2025 15:25:29 GMT

You should fill box 16 with the amount in box 2a. If box 2a is blank or 0, then use the amount in box 1.

Re: State Tax Withheld/State Distribution

ca2025 — Wed, 19 Mar 2025 15:35:28 GMT

I don't think that is correct (sorry!). I don't want to show my taxable amount (as in box 2a) in box 16 since the state distribution number (box 16) is MUCH larger than state tax withheld.

Does this make sense?

Re: State Tax Withheld/State Distribution

MaryK4 — Wed, 19 Mar 2025 15:39:29 GMT

The Box 16 amount is the amount that is state-source income so it is your distribution since only your only claim retirement income in your resident state. Unlike on W2s, withholding is NOT REQUIRED on most normal retirement distributions, so the amount is what you indicated on your W4P or similar form. @ca2025

Re: State Tax Withheld/State Distribution

ca2025 — Wed, 19 Mar 2025 15:42:58 GMT

What is a W4P form? And what can I do to get TurboTax to allow my return to be filed? I have no idea!

Re: State Tax Withheld/State Distribution

ca2025 — Wed, 19 Mar 2025 15:44:41 GMT

Since I keep getting the error that line 14 should not be larger than line 16A

Re: State Tax Withheld/State Distribution

VolvoGirl — Wed, 19 Mar 2025 15:46:26 GMT

A W4P is to tell the pension or plan how much withholding to take out. You don't need that unless you want more or less taxes taken out of the withdrawal or pension in the future. Yes you need to fill in box 16 if you have any state tax withholding in box 14. It won't affect your federal or state return.

If you have state withholding in box 14 then enter the same amount as in box 2a. If box 2a is blank use the amount from box 1.