Final check flagging 1099-R line 14 State Tax withheld

[sanfordjl27]

When trying to e-file both my federal and NY state taxes, the program wants a final check before e-filing. The final check flags a 1099-R form data on line 14 State tax withheld claiming that the correct amount entered exceeds the gross or state distribution.  The state distribution 16 on the 1099-R form is empty. Apparently for NY, line 16 can be left blank. But even if the amount entered on line 16 matches line 14, the program keeps flagging the line 14 entry in an endless loop.

This problem appears to be a programming bug not allowing me to file my taxes. Please fix or help me with a work around. Thanks.

[macuser_22]

NOTE: prior to 2020 the state tax was in boxes 12-14, 2020 renumbered those boxes to 14-16.

Box 16 is not usually required because it has been an 1099-R industrial standard for many years that if there is only one state in box 14 & 15 then the box 1 amount does not need to be allocated between two states - the entire box 1 amount is understood to be the state distribution so box 16 is just left blank.

But recently, there are at least two states (one being NY) that will reject 1099-R's with a state tax and a blank box 16 so it is okay to enter the box 1 amount into box 16 to satisfy the states requirement.

[Robodude111]

Unfortunately your suggestion does not fix the issue. I'm sitting here in a forever loop trying to finish up my taxes over a form 1099-R that lists a zero distribution and a zero tax withheld and a Turbotax Premium software that won't allow me to transmit my tax forms. Sorry Intuit, but this is NOT why I purchased Turbotax. This is an obvious glitch in your software that should have been fixed well before today. If someone has a clear and workable way around this I'd appreciate hearing it. 

For clarity, this is the difficulty...  Turbotax informs you you're good to go and you click through to the point where you're about to transmit your Fed and NYS returns. At that juncture the software tells you 'everything looks great', but 'before you e-file, we need a little more information that we didn't need earlier'. The software then takes you back to a page showing you your 1099-R, indicating a problem with Box 14a. It explains, 'for electronic filing, NYS and Local withholdings cannot be greater than or equal to gross distribution'.  In my particular instance, the distribution was left blank (there was none) and 14a is also blank since nothing was withheld. Leaving these blank will not allow you to proceed to transmission, nor will filling in boxes with a "0" (including matching box 16 with box 1 as suggested above). All variables seem to keep you in a loop where you're about to transmit, only to be brought back to a page about this box 14a. 

If someone out there has a resolution, I'd appreciate hearing it. Thanks.

[SteamTrain]

@Robodude111 

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@Robodude111 wrote:

..............  In my particular instance, the distribution was left blank (there was none) and 14a is also blank since nothing was withheld. ....................

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You need to clarify your situation:

1)  Did you take any money out at all from that 1099-R provider?  i.e. is box 1 empty???? IF not, then your issue is that you have an empty 1099-R that transferred in form last year's filing, and what you need to do is to go back to the 1099-R entry section and delete that 1099-R entirely. 

You can't file with empty forms of any type remaining in your tax file.  Even unused 1099-INT and -DIV forms ha e to be removed if they transferred into this year's file, from last year's file, and you do not need to use them again.

....OR....a different situation

2)  if box 1 of that 1099-R has a value, because the provider DID issue a 1099-R form...then you may have to put the value of box 1 into box 16 as a "distribution"  irrespective of whether it is state taxable or not.   Whether it is state taxable will be determined by your answers on the pages following the main form entries during it's Q&A in the interview.

[evanauken]

I have the same issue.  I am in an endless loop

[evanauken]

My documents from Schwab show an amount in 14a but nothing in 16.  When I get to the end for the check it says 14a can not be more than or equal to the amount in 16.   I am not sure what to put in 16.  I put the same amount in 16 but it still kicks it so I put more in 16 and it still kicks it.    It is in an endless loop for NY state

[RaifH]

If there is an amount withheld for NY state taxes in Box 14a and there is no other state listed in Box 14, then you can use the gross distribution in Box 1 as the state distribution in Box 16, as @macuser_22 advised.

If the distribution is partially or fully tax-exempt in NY, that will be determined through the follow-up questions.

@evanauken

[evanauken]

Thanks   That is what I did.  But first time when I put something more in 16 than what was in 14a  it did not take it and gave me the same response.   I had to put into 16 what was in 1.  Then it worked.   Crazy!!!

[lysamilano]

Similar Issue 1099 R

Turbo Tax Premier 2021, October deadlien is fast approaching already.

During Smart Check-Errors, this 1099 R form poppedup.

I didnt received 1099R , what I entered is the 1099B coz I had a TRansfer Broker & Barter Exchange Transaction.

I always hit Upgrade TT softwae before i start working TT , Toll free not of help.

Need an Expert over the phone , just like before.

Hope for a resolution.

Anyone has same issue. Please rteply here, thanks

[Critter-3]

If you should not have a 1099-R then return to that entry section and remove any blank  1099-R forms that may be listed there ... that should solve your issue.

[Anonymous]

I had $0.00 in box 1, 14 and 16. The workaround for me was to make box 15 also blank. That cleared the error and allowed me to file.

[andrew231]

The same error is still happening maybe.

In my case when it imports a 1099-R from a Financial Institution.  It takes the 1099-R and creates two separate documents.   So Boxes 1,2 are filled out in the first import.  And box 4 is filled out on the 2nd import.

I had to manually delete one of the two forms and do it by hand.