1099-R

[bprogers18]

NY state says that box 12 on the 1099-R form cannot be the same or greater than box 14.  For the many years that we have filed, box 12 has been greater than box 14 but TurboTax will not let us file this year.

What should we do?!?!

[AnnetteB6]

Try entering the same amount shown in box 1 of your Form 1099-R into box 14.  This should take away the error and allow you to continue.

[Shakkaboom]

I have a similar problem. I withheld 100% of my state distribution for state taxes.  (Box 1, 12, and 14 are the same number). The Turbo tax error says that "withholdings cannot be greater or equal to the gross distribution."  THIS IS A TURBO TAX ERROR as the witholdings could very well BE EQUAL to the distribution.  HOW DO I OVERRIDE?

[Shakkaboom]

UPDATE.  I changed the tax withheld to one penny less than reported on my 1099R, and I still get the same error. ("State withholdings can not be greater than or EQUAL TO state distributions")   (Turbo Tax is probably rounding to the nearest dollar before doing the entry validation calculation.) 

[DaveF1006]

The question is, did you really pay state tax that was equal to the distribution? This is highly unusual.  You may wish to review the entries on your 1099R to see if these amounts are correct.

Check your 1099R and check the state entries in Boxes 12-14.  Box 12 should have the state income withheld.  Box 13 will have the state ID number, and box 14 will have the Distribution amount. Box 12 should be less than Box 14.  if not, than you will need to contact the issuer of the 1099R to issue a corrected one.

[Shakkaboom]

YES I DID HAVE 100% OF MY DISTRIBUTION WITHHELD FOR STATE TAXES.  THAT IS WHAT I INSTRUCTED MY BROKER TO DO.  THE 1099R IS NOT IN ERROR!  IT IS A TURBO TAX CODING PROBLEM.  RIGHT NOW IT WILL NOT LET ME SUBMIT MY TAXES ELECTRONICALLY WITH THIS ERROR.  UNFORTUNATELY, IN NY, IF I USE TURBO TAX I CAN NOT PRINT OFF THE RETURN WITH THE "ERROR" AND SUBMIT AS PAPER.  E-FILING IS REQUIRED IF I USE TURBO TAX.  TURBO TAX NEEDS TO FIX THIS NOW!!!!

[DaveF1006]

Before you print and mail, try recording a different amount for your tax withheld. For an example, try recording the withholding tax $1 less than the distribution amount to see if you can efile.

[SteamTrain]

Also, many states have an E-filing limit on those numbers. 

There have been a few that restrict box 12 to be ~25% or less than box 14  (I don't know what NY's limit might be).  Some might set it at 50%...but it would depend on each sates e-filing rules

BUT.....that % limit is only for "E-Filing"....they still allow it to be filed...but only paper-filing in the mail...because they want to SEE that actual 1099-R form in the mailed tax package, that shows such a high withholding amount as proof that it was really done that way.

[Shakkaboom]

Strange. I did check w ny .gov and TurboTax error message matches the ny requirement for e-filing 1099r. I thought NY had access to my 1099r through irs database, so they could confirm authenticity. If they don’t, I will just submit a lower withholding number so I can still e-file. 

[ThomasM125]

I believe that it is the New York Department of Revenue that is not allowing the e-file. They set up limits on certain things for e-filing, so they can verify numbers manually if they fall too much out of the norm.

[Shakkaboom]

Yes.  It appears that this is not a TurboTax bug, rather it is a New York State requirement for e-filing.  See page 12 of https://www.tax.ny.gov/pit/efile/errorcodelistingty2016.pdf   A taxpayer may not e-file if he withheld 100% of his NYS distribution (which I did).

I ended up entering a withholding in Turbo Tax that is $1 less than is on the 1099R. I was then allowed to e-file (and hence overpaid my NYS tax by $1).  I am sure NY will thank me by putting me in jail for not accurately entering my 1099.

[SteamTrain]

@Shakkaboom 

Be sure you save all your tax forms, and a full printout of your entire NY tax return.  In a few-weeks to several months, I suspect the NY tax people may send you a letter demanding to see that 1099-R tax form, and any others that have NY withholding on them.  (but that's just a guess ).

....maybe they'll let it pass...maybe they won't.

[Rich_19_]

For NYS filers getting the form 1099-R error - "Form 1099-R Box 14a, for electronic filing New York State withholdings can not be greater than or equal to the gross distribution or state distribution" here is the correction you need to do in order to allow your NYS e-file to be accepted.   In Box 14a enter a "X" in the error correction box that says you verify the NYS withholding amount is correct.  Then enter the Box 1 Gross Distribution amount into Box 16, the State Distribution amount.  I had 1099-R's for multiple payers.  Those that had a blank in Box 16 resulted in the error message above, while those that had an amount in Box 16 were error free.  Hope this works for you!