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TurboTax Virginia Software is not Pulling the State Tax Paid on Retirement Plan Distributions

My wife received retirement distributions and the plan's 1099-R form box 14a shows an amount of $1,200. TurboTax successfully pulled the 1099-R from the financial company and I confirmed that the $1,200 amount shows up in TurboTax. 

 

We are filing jointly but the calculated Virginia state refund is $1,200 lower than expected. The reason is that TurboTax, instead of showing $1,200  in line 19B of the Virginia form VA760CG, which is the state tax withholding for the spouse, it's showing zero. 

 

It seems that there is an error in TurboTax; the Virginia state software is not pulling the state tax that the retirement plan administrator is withdrawing from retirement distributions. 

 

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1 Reply

TurboTax Virginia Software is not Pulling the State Tax Paid on Retirement Plan Distributions

Two or three things to check first.

1)  Edit the 1099-R and make sure it is assigned to HER as the recipient and not to you.

2)  Check box 15 and make sure "VA" is in the first half of box 15  (state employer ID number will also be needed in the second part of that box).

3) Many states require box 16 be filled in with box 1 or 2a...not sure what VA requires.  This usually has to be done by the user.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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