Income that California handles differently: IRA and Pension Distributions

[kingdomcome661]

IRA Distribution Adjustments.

Pension Adjustments.

I don't understand how to do this. I have both 1099-R, but I don't ever remember having to do this so I am confused as to what numbers to use.

[Irene2805]

On your 1099-R, compare the amounts in box 1 (gross distribution) and box 16 (state distribution) to see if they are the same or different.

In your California return, on the screens, Any IRA Distribution Adjustments and  Any Pension or Annuity Adjustments, please do the following:

• If box 1 and box 16 are the same, enter nothing and click Continue.
• If box 1 is higher than box 16, enter the difference in the Subtraction column.
• If box 1 is lower than box 16, enter the difference in the Addition column.

Click Continue when  you are done.

[njt-562]

So one of my forms has nothing in Box 16 its just blank but State taxes were taken out so I feel like it's just a typo? The other form Box 1 and 16 are the same amount. However since I took these distributions for COVID reasons and the Federal Form 8915-E I'm splitting the income over 3 years, do I need to do something different in State adjustment piece and if so what do you put for the description?

[MarilynG1]

@njt-562 If Box 16 is blank on your 1099-R, but you have state taxes withheld, the amount of your State Distribution is probably the same as the Distribution in Box 1,  You may want to verify this with the Payer, however.

If you are claiming your Distribution on your Federal return over a three-year period as allowed by the CARES Act, adjust the amount of your California State Distribution to match your Federal Distribution amount for 2020.

California is conforming to Federal guidelines regarding CARES Act.  Click this link for more info on the California CARES Act.

[GS2011]

I have a Federal pension.  I have amounts in boxes for

1. Gross distribution,

2a. Taxable amount,

4. Federal Income Tax Withheld,

5. Employee contributions/ROTH Contributions or Insurance Premiums,

9b. Employee contributions,

12. State Tax withheld

But no box 16.  How do I figure the Pension Adjustments?

[macuser_22]

Box 16 has nothing to do with it and is usually blank.

If a Federal Pension then it s probably a CSA 1099-R - NOT a regular 1099-R so choose the CSA type - the boxes are different.

That is probably a CSA 1099-R from OPM.

The taxable amount in box 2a is usually the box 1 amount unless you have after-tax contributions in the retirement plan and use the simplified method. If this is NOT the first year of receiving payments, then you should use the same method that was used last year - either the box 1 amount or the simplified method, using the carry forward simplified information from last year.

If box 2a is blank or UNKNOWN then there should be amount in box 9b to use with the simplified method. If no amount in 9b then contact OPM to find the account "basis".

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[GS2011]

I verified the correct 1099R (CSA) form.  

Thanks macuser_22 for the quick response!  🙏

[cc247]

Why doesn't TurboTax just calculate this for us? All the data has been inputted in the previous 1099-R steps and there is no reason for us to have to guess/figure this out, which makes it confusing.

There appears to be multiple response here from Experts, namely, Irene2805 who says to use box 1 & box 16, but macuser_22 who says box 16 has nothing to do with this. More confusing.

Shouldn't taxable amount for federal and state be in 2a? If there was a difference between state and federal "taxable amount", there is no box that distinguishes between the two.

[packlet]

My 1099-R (from IRA RMD) has box 16 (State Distribution) value of 0.00 (not empty).

Does that mean the distribution was not subject to state (California, in my case) taxes?  Or does zero mean the state distribution is not different from the gross in box 1?

[DaveF1006]

No the distribution is taxable in he State of California. The $0.00 should not be reported and may cause a filing area. Leave those blank.  It just means that the distribution will still be taxable in the State of California.