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Turbo Tax will not transmit due to an error it has. It says my tax withheld is greater than my distribution when it is not.

Turbo Tax will not transmit due to an error it has. It says my State tax withheld is greater than my distribution, when it is not.

 

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4 Replies
AnnetteB6
Expert Alumni

Turbo Tax will not transmit due to an error it has. It says my tax withheld is greater than my distribution when it is not.

If your Form 1099-R does not have an amount in box 16 for a state distribution, but there is an amount in box 14 for state tax withheld, then the review message thinks there should be something in box 16.

 

Entering the box 1 amount into box 16 should clear the review message.  

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Turbo Tax will not transmit due to an error it has. It says my tax withheld is greater than my distribution when it is not.

But check your data entry for any misplaced commas or decimal points.

spacemajor
Returning Member

Turbo Tax will not transmit due to an error it has. It says my tax withheld is greater than my distribution when it is not.

Unfortunately, it does not clear it up. 
Box 1 is ZERO

Box 16 in blank.

Box 14 is over $1500

 

It is not a glitch either as several previous 1099-Rs have similar entries.

DaveF1006
Expert Alumni

Turbo Tax will not transmit due to an error it has. It says my tax withheld is greater than my distribution when it is not.

If you received a 1099R that reports withholding but no distribution amounts, you will not be able to efile.  The question is, did you receive a retirement distribution this year that should be reported on this form either in Box 1 and/or Box 16? 

 

If you wish to report this, do not report this in the 1099R section as this would be fruitless. Instead report this by doing the following. 

 

  1. Delete your 1099 R entry
  2. Go to federal>deductions and credits
  3. Other income taxes paid in 2021>Withholding not already reported on a W2 or 1099R 
  4. Answer the first question that appears as yes.
  5. Next enter the amount of either federal income tax or state income tax that was withheld in the appropriate sections on that form. 
  6. You should be able to efile.

Before you do this, you might ask the issuer of your 1099 to ask why the income tax withheld was reported but not corresponding distributions. Be sure to document the answer in case if you are contacted by the state agency. Also keep the 1099R form for future reference.

 

If the issuer did make a mistake by not reporting distributions, then they will need to issue you a corrected 1099R.

 

@spacemajor

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