1099R

[ken hannan]

I have a 1099R from Fidelity which correctly documents my withdrawal amount, Federal withholding, and State Withholding, but TurboTax won't allow me to proceed because it says that the amount in Box 14 (State Withholding) cannot be larger than the amount in Box 16.  This was not a problem on last year's return - I used Turbo Tax then as well, and Box 14 had the correct amount, and Box 16 was blank.  I called Fidelity and they said that Box 16 is optional.  I cannot adjust Box 16 and am stuck, unable to file electronically.  Can anyone help with this?

[LeonardS]

As Fidelity stated Box 16 is optional and from your post in past years Box 16 was blank.  To alleviate your problem just leave the optional Box 16 blank.

[ken hannan]

That worked last year, but this year I am stuck in a loop where TurboTax does not allow me to finish the return.  It says "Form 1099-R (NATIONAL FINANCIAL SERVICES LLC as agent for): Box 14a For electronic filing, New York State withholdings can not be greater than or equal to gross distribution or state distribution."  I think this is a Turbo Tax software error, where a programmer prohibits the completion of the return due to Box 16 being blank.  My only alternative would be to print everything and mail it in, which I would prefer not to do.  I am hoping to bring this to someone at Intuit's attention and get it fixed.  I can't be the only person experiencing this problem.

[AnnetteB6]

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 review message thinks there should be something in box 16.

Entering the box 1 amount into box 16 should clear the review message without changing your tax return.

@ken hannan

[ken hannan]

I agree, but the form that was imported from the Fidelity site cannot be altered by the taxpayer (i.e. me).  And the version that I downloaded myself from the Fidelity site is only available as a PDF.  So I'm stuck and unable to file electronically, until 1 of 2 things happens:

1. Intuit removes the logic that requires an amount in Box 16 that exceeds the amount in Box 14 that shows the State Tax withheld.

2. I get a revised form from Fidelity that shows the same amount in Box 16 that is in Box 1.

[JulieS]

You can delete the imported 1099-R and enter it manually. 

To do that:

1. Open your return and make sure you are in the Federal section.
2. Select Income from the upper left.
3. Find IRA, 401(k), Pension Plan Withdrawals (1099-R), on the list, click
4. Start or Review to the right. 
5. Remove the imported 1099-R by clicking on the little trash can to the right of the entry.
6. Click Add another 1099-R toward the bottom left.
7. Click Continue. 
8. Scroll down the bottom and select, Change how I enter my form. 
9. On the next screen, select Type it in myself, in the lower right corner.
10. Select 1099-R on the next screen and click Continue.
11. Enter the 1099-R form by hand and use the box 1 amount in box 16.
12. Keep going until you finish the section. 

This will not change your results and will allow you to e-file.
 

[ken hannan]

When I said that I couldn't change what was on Form 1099-R, I was approaching it from the perspective that what was shown on the screen in the box (16) that was blank was "grayed out" (i.e. it was not changeable, and could not be tabbed into from where the error was being described).  

I subsequently went back to the input for "Income", and proceeded to the area where Form 1099-R was electronically imported from Fidelity, and saw that I WAS able to alter the number in Box 16 there, and save the result.  Problem solved!!

I corresponded with the representative who I chatted with on line about this issue, and suggested that it would be prudent for Intuit to accompany the error message in situations like mine to suggest the fix - i.e. Instruct the user to access the form in the "Income" section of the application.

So my final hurdle is fixed, and I am giving my return one last look before filing electronically.  I feel stupid for not thinking of the solution earlier myself, and I hope that my suggestion is helpful to others.

I want to thank everyone who responded to my question for your assistance!

[Janmccann]

I had the same problem last year and again this year and I am no “allowed” to paper file in NY! Help!

[Janmccann]

I did both times leave it blank and e-filing was rejected for both federal and state!

[VolvoGirl]

Did you read all the prior posts?  Enter the same amount from box 1 into box 16.