There is a critical software bug in TurboTax 2023 Premier (Windows edition) related to the 1099-R IRA form and the state tax withheld. Specifically, the software is not including the state tax paid entry from the 1099-R IRA form in the total state tax calculations.
Steps to Reproduce:
Expected Behavior: The state tax withheld as entered in the 1099-R IRA form should be included in the total state tax calculations.
Actual Behavior: The software ignores the state tax withheld entry from the 1099-R IRA form, and it is not reflected in the total state tax calculations.
Impact: This bug causes incorrect state tax calculations, which can lead to underpayment or overpayment of state taxes. This is a serious issue that needs immediate attention.
Additional Information:
Please address and fix this error as soon as possible. Thank you.
Did you enter the right state in box 15? Try deleting the 1099R and enter it again MANUALLY. That usually clears something out.
Which state?
Delete the Form 1099-R and re-enter manually.
The state taxes withheld on the Form 1099-R box 14 for the state listed in box 15 will flow to the state tax return as state taxes withheld.
Tested using 2023 TurboTax Premier edition with all the latest updates. The state taxes withheld on the Form 1099-R transferred to the state tax return with no issues.
Worked OK for me for an NC tax return.
Windows Premier Desktop: Fed +NC
10,000 entered as a 1099-R (box 1 & 2a)
2,000 Fed Withholding (box 4)
500 NC withholding (box 14)
And no problem on my Windows 10 Home & Business Desktop program on all my 1099R forms. Federal and California. And my friend’s Mac Premier, California.
Yes right box (#15). I deleted it and entered it manually but it is simply not taking it. This is for California in state1 box15.
OK I have California too. After you re entered the whole 1099R did you go to the State tab and start start over for it to update? And you switched to Forms to check the 540 line 71 for withholding? What did you enter for box 14 withholding? Did you also fill in box 16? Box 16 might be blank then you should enter the same as box 1.
Have you updated both the program and your Windows? No matter what I do I can not make CA ignore it.