I have a 1099-R from my annuity. The gross distribution box 1, has an amount. The state distribution box 16 has nothing. There were state taxes withheld.
In adjustments to my state tax return, should the gross distribution amount be entered as a subtraction?
It depends on what type of adjustment you mean. Unless there is a specific subtraction for the state return, you would use the Box 1 amount.
It's an adjustment for how California deals differently with distributions from IRAs, Annuities, Pensions etc.
The instruction says, if the state distribution is less than the Federal, enter the difference as a subtraction. If the state distribution is greater than the Federal, enter the difference as an addition.
Since box 16 is blank, I entered the entire distribution from box 1.
Turbo Tax is giving me an error that the amount is too big.
I have two other 1099-Rs from pension and 401K distributions that have the same amount in box 16 as in box 1.
Why am I getting an error from Turbo Tax?
The retirement distribution is reported on Form 1099-R. The amount on Box1 1099-R is the gross distribution from your retirement plan. If line 16 of 1099-R was left blank, you needed to enter the amount from Box 2 which was the taxable amount of the distribution. You can go back to the form 1099. Instead, delete the amount you already entered and changed it to whatever amount on box 2 of 1099-R You do the same to the other 2 1099-R forms. The taxable amount on box 2 and line 16 (State Distribution) must be the same amount.
Is the same true if the 1099-R is for a pension annuity? I have 3 1099-Rs and two have state distributions and one is blank. Contacted payer and they said it is supposed to be blank.
Should have added all 3 1099-Rs are for pensions, not retirement distributions.
Form 1099-R is used to report the distribution of retirement benefits such as pensions and annuities. You should receive a copy of Form 1099-R, or some variation, if you received a distribution of $10 or more from your retirement plan.
Click here for when to use a Form 1099-R.
State Distribution refers to the amount of the distribution being reported on the form that was reported to your state, and for which state taxes were deducted.
If state taxes were deducted, those would also be reported. In some cases, this is left blank because the state you are in does not require that information to be reported or does not tax it.
In some cases it may be because the issuer of the Form 1099-R, did not know which state it should be attributed to, so they left it blank. If you enter the data that you have on the form, TurboTax will figure out what should be done with it, and whether or not your state actually needs to know about it.
Your Forms 1099-R should be entered separately into TurboTax as they are shown on the forms. They would go in your Income section of your Federal tax return under Retirement Plans Social Security. California does tax pension and annuity distributions. You can enter the amount from box 1 of your Form 1099-R in Box 16. That is fine to do.
Click here for information on where to enter your Form 1099-R.
" If you enter the data that you have on the form, TurboTax will figure out what should be done with it, and whether or not your state actually needs to know about it."
Here's the question many are asking, when we get to the CA tax return and it asks about "income that CA handles differently" I've seen posts from "experts" saying if Box 16 is less than box 1 (and blank seems to be a zero, so that indicates less???) then enter the difference as a subtraction! That equals the entire amount in Box 1.
Doesn't seem that TT is figuring out what should be done on the state return, so what DO we enter here?
Thanks
If you know that your retirement distribution is California-sourced income, you had California withholding on it and you entered the amount from Box 1 on Box 16 in the Federal section for Form 1099-R because Box 16 was left blank on your Form 1099-R, then you should not subtract it from California income.
Some payers routinely don't enter the amount of the distribution in the state section. TurboTax will look for an entry in Box 16 when there are state taxes withheld.
See this thread for another discussion of the issue.
See here for the California FTB guidelines for pensions and annuities.
Contact your payer with any questions about entries on your Form 1099-R; for example, if they entered a smaller amount in Box 16 than in Box 1 but didn't leave it blank.