1099-R

[pittyjunk]

Why is box 16 blank in one of my 1099-R's and filled out in another?

(in one 1099-R, box 16 is blank / retirement account)

(in my other 1099-R box 16 mirrors the gross distribution & taxable amount / boxes 1 & 2a) from a pension

When I enter the one where it matches the gross distribution/taxable amount, the state tax goes up dramatically. I tried to get clarification from my pension and retirement vendors (2 different vendors): All I get is "ours is right" ask the other vendor. The retirement vendor told me they decided as a company to leave box 16 blank. The pension vendor told me box 16 had to be completed and it reflected the amount owed to the state (WI).  Since I owe state taxes on both the pension (box 16 completed) and the retirement distribution (box 16 blank) - I'm trying to figure out if there's an error in the 1099-R, or if that discrepancy is acceptable.

Why would one increase my state taxes by $3500 (box 16 blank), and the other one (box 16 blank), didn't impact it at all?

Any help would be greatly appreciated (the vendors tried, but never really answered my question). I hate to go to a tax preparer just to tell me if there might be an error in my 1099-R

[ThomasM125]

Box 16 on Form 1099-R is where the state income distribution is reported. It is possible if you leave that entry blank when you prepare your state tax return the distribution won't appear as taxable on it. You can look at your state tax summary to determine if the proper income is being reflected on it by following these steps in TurboTax:

While working on your state tax return in TurboTax:

1. Click on Tax Tools in the left menu bar
2. Click on Tools
3. Look under Other Helpful links….
4. Choose View Tax Summary

[pittyjunk]

Thanks for your response.

My question wasn't so much about how box 16 works in Turbotax, but how the discrepancy appears on the two 1099-R's. I would think they should either both include information in box 16, or leave it out. Any additional help you could provide would be greatly appreciated!  Greatful

[MaryK4]

The IRS says 

Boxes 14–19. State and Local Information

These boxes and Copies 1 and 2 are provided for your convenience only and need not be completed for the IRS. Use the state and local information boxes to report distributions and taxes for up to two states or localities. Keep the information for each state or locality separated by the broken line. If state or local income tax has been withheld on this distribution, you may enter it in boxes 14 and 17, as appropriate. In box 15, enter the abbreviated name of the state and the payer's state identification number. The state number is the payer's identification number assigned by the individual state. In box 18, enter the name of the locality. In boxes 16 and 19, you may enter the amount of the state or local distribution. Copy 1 may be used to provide information to the state or local tax department. Copy 2 may be used as the recipient's copy in filing a state or local income tax return.

For Wisconsin, see Publication 117.  It does not require that the State information has to be provided if there was no state withholding.  

@pittyjunk