Blank box 16 on Ohio 1099R with withholding in box 14 is an error

[johnkota]

This is an extension of an older problem with 1099R Boxes 14 and 16.  This time the state in question is Ohio.

I withhold for Ohio on my IRA distributions.  The 1099R shows the correct amount in Box 14 but Box 16 is blank.

TurboTax treats this as an error.

The issue is that for many, many prior years this 1099R situation has been the same, however, prior year filings did not trip an error and my filings processed cleanly with no error.

I am concerned that arbitrarily forcing a number into Box 16 which had nothing reported to the IRS will cause a problem post submission.

So, is this a program change at TT that somehow overlooked an exception handling process for this condition for Ohio returns or some other type of potential software problem?

Thanks for any help on this.

[BrittanyS · Accepted solution]

Box 16 on the 1099-R is for state distributions.  Many states require box 16 to be completed.  If box 16 is blank you will enter the amount from box 2a.  Box 2a is the taxable amount of the gross distribution.  If box 2a is blank, and you haven't made after-tax contributions to the account, you can use the amount in box 1.

[bp2860]

This was the answer I received from the Ohio Department of Taxation

[NCSG]

This is like being asked to be like Eve in the Garden - go over to a tree I shouldn't and listen to the Snake.

Why put something into box 16 if my 1099-R has it blank, and "WHY" should I enter the amount found in the 1099-R box 1 or 2a "OR" to be told to enter the amount found in box 14 into box 16?  Box 1 or 2a which would be a VERY different amount than an amount found in box 14.  And apart from that, the amount in box 1 or 2a contains the amount of QCDs (Qualified Charitable Distributions) which are TAX FREE !

- and Intuit knows that that has to be handled and Intuit inserts on the 1040 line is a "typed in"  "QCD",

on the line and an amount which is box 2a minus the amount of the QCDs. That then is the resulting amount that I am taxed, so why would the State want an amount that I am not being taxed for, and why is it referred to as wages if I am retired and this is just a 1099-R of an IRA?

I e-Filed once and got Audited by the IRS because they could not determine what effect the QCDs had on the return and expected me to pay taxes on them.  I had to explain to the agent what TurboTax does to deal with QCDs.   (and Frankly, IRS agents are Not fans of TurboTax - I have had to talk to 4 agents in the past to resolve issue).  (Note - the problem is not who produces the 1099-R, nor is it the IRS - It is Congress that won't fix the 1099-R).

[VolvoGirl]

Nobody ever has said to enter the amount from box 14 into 16.  Just either box 1 or 2a.  They said if box 14 is blank or zero to leave boxes 14, 15 & 16 all Blank.  

[tlhanselmana]

Had same problem with Indiana 1099R

Would not let me file electronically unless there was an amount in box 16 even though that box shows .00 on my form!!!

This was all after I had entered State driver's license information and payment information for filing...if you're going to stop the filing, at least do it before that!!

Plus the federal review lets you continue and then validate that the information you have entered is correct!!

[tskapela]

I have the same issue with NY with a 1099-R for BENE IRA distribution.

• Non-zero value in boxes 2a and 14, with box 16 empty.
• Turbotax passes all checks until after payment during final review and notes there is an issue for the *Federal* return.  
• Proceeding to try to remedy this it brings me to the same error as in this thread, for a *State* requirement?

If the 1099-R is provided to me with a blank in box 16, why is TT preventing me from continuing (*after payment was made*) and forcing me to arbitrarily fill information not on the provided 1099?

I'll note the IRS reference for boxes 14-19 (emphasis mine):  "Boxes 14–19. If state or local income tax was withheld from the distribution, boxes 16 and 19 may show the part of the distribution subject to state and/or local tax."  The NY IT-1099-R form states only to copy the values from the federal 1099-R and doesn't make any other statements nor specifics requirements for filling additional data.

[Hal_Al]

@tskapela 

You should start a new thread with a fresh question to get more eyes on your question.  You've tagged on to an old thread with a somewhat different subject (Ohio).