1099R - There seems to be a problem with the TurboTax program

[CityTaxGal]

I was almost finished completing doing my taxes via TurboTax (Online Premium Self-Service) and I had just finished paying Turbotax for using the program. During the final review before actually submitting my tax form, I received a message from the Turbotax program regarding my 1099R form for an inherited IRA. The message said that I would not be able to file electronically because NYS has a law saying that the amount withheld for the State tax cannot be greater than the amount of the distribution. This message doesn't seem to apply to me because the gross distribution of $400 was clearly a lot more than the $20 that was withheld as State tax. No matter how many times I went through the program and re-input the numbers, I still received the same message that would not enable me to file the form electronically due to that apparent glitch. Have other folks experienced this issue?

[AnnetteB6 · Accepted solution]

If your Form 1099-R does not have an amount in box 16 for a state distribution, but there is an amount in box 14 for state tax withheld, then the error message thinks there should be something in box 16.

Entering the box 1 amount into box 16 should clear the error message without changing your tax return.  The box 1 amount represents the distribution amount, which would be the same for Federal or state purposes.