Go back on the 1099-R and correct the state withholding amount. You can do this either by going back to the federal interview and clicking on the income section. Find the area relating to 1099-R and select that. Find the 1099-R you need to correct and click on it, it should be box 12. If you are using the desktop version of our software, you can click on "Forms" in the upper right hand corner and then look to the left hand side menu to find a listing of all your forms. Select the 1099-R that needs to be edited and edit the state taxes withheld box, it should be box 12.