1099-R Error Check

[DG2016]

My 1099-R is entered into TurboTax exactly as it is on the form.  My form shows State income tax paid, but no State Distribution.  Error check wants an amount in "State Distribution."  My State income tax is based on the amount entered on my 1040, so correcting the error will not change my taxes.  But, I don't want my filing rejected.  If I correct the entry, the entry will not match the 1099-R.  If I don't correct it, I will be filing my return with unresolved errors.  Which, if either, will cause my return to be rejected?  Am I better to fix it or not?

[JamesG1 · Accepted solution]

If error check requires it, I would recommend entering the state distribution in boxes 14-16.

You are able to check the Federal and state balances to be refunded or owed.  Print out or view the Federal 1040 income tax return and the state income tax return(s) to ensure that the balances of your income tax returns are not being changed.

You may print or view your full tax returns prior to filing after you have paid for the software. 

• View the entries down the left side of the screen at Tax Tools.
• Select Print Center.
• Select Print, save or preview this year's return.

[Sladrock]

DG2016, I am having the same issue you are with my 1099-R.  The Turbotax error states "Form 1099-R (Name of institution): Box 14a For electronic filing, New York State withholdings can not be greater than or equal to gross distribution or state distribution".

NOTE: it does NOT say greater than AND equal to gross distribution or state distribution".

The answer from the Turbo Tax Expert to just fill in state distribution terrible.  Asking us to falsely enter an amount not on the original 1099-R is their answer!  Crazy.. How about Turbo Tax fixes their software immediately to not throw and invalid error.

As an aside, if you did file your return by entering the state distribution, did it successfully go through?

[DG2016]

I share your concern.  I actually have not filed yet.  I will be owing money so I'm not in a huge rush.  I was sort of hoping I would get a better answer to this question if I waited.  Unfortunately, that's not happened.  I agree - I would think the software can be fixed to not require you to change information that's on a valid tax form.  Incidentally, I've been receiving the same 1099's for years - they never have a state distribution listed and this is the first time TurboTax has generated this error.  Doesn't make sense.  

[Sladrock]

Thanks for the quick reply.. Maybe another Turbotax expert will see these messages and provide a better answer or guarantee that filling in the state distribution will not affect the filing.

[VolvoGirl]

For state boxes,  if box 16 is empty or zero then for box 16 State Distribution put the same amount that’s in box 1.  If box 14 is blank you can leave boxes 14,15 & 16 blank.  Filling in box 16 state distribution will not affect your state return.   No one who has done that and filed has reported any problems.

[AnnetteB6]

It is my understanding that this error check is in place only for certain states who require that an amount be placed in box 16 if there are withholdings present in box 14.  Box 15 for the state and state ID number will also need to be filled in.  Each state has its own specifications and error checks with regard to items reported with state information, and those requirements can change from year to year.  TurboTax just put this error check in place before you actually file the return so that it would not be rejected by the state and require you to fix it later.

Your actual state tax return is based on the information reported on your Federal return, so boxes 1 and 2 of your Form 1099-R are much more critical than box 16 with regard to your state return calculations.  

While it cannot be guaranteed that putting the amount reported in box 1 in box 16 also will not affect your electronic filing of your return, you can always choose to file by mail instead if you are worried.

@DG2016 

@Sladrock 

[DG2016]

I guess that explains the error.  It still seems that a "we're going to flag it whether you need it or not" approach is unnecessary and it would be better to only give the error if you are filing in a state that actually requires the box be filled in.  The option to file by mail if I'm worried shouldn't be an answer, though.  I purchase the TurboTax every year, in part, so that I can file by mail.  The solution to what are obviously programming deficiencies shouldn't be to inconvenience myself by not using the software as intended... the solution should be to fix the software.

[DG2016]

VolvoGirl, thank you!