1099-Rollover distribution and glitch in TurboTax not allowing me to proceed

[rdhdiver]

I cannot fix three (3) errors during Turbotax review of my Return.  I have two (2) 1099-R forms that are both rollover distributions from previous employers where I had money invested in 401-Ks.  In 2024, I rolled over both 401-Ks to my already existing Retirement IRA to cosolidate investment funds.  The 1099-Rs have a box 15 in which one of my 1099-R forms does not have a Payer's State Number shown.  I have called the Company that generated the 1099-R and the two different folks I spoke with on two different calls, both told me they don't provide that info on their 1099s.  In the IRS publications, that info is not even stated as being necessary but TurboTax won't let me proceed.  HELP!!!  I also reached Tech Support at TurboTax and that person was of no help either and even suggested I make up a number or put zeroes there.  That is crazy.  Finally, there is a worksheet associated with this form that also is source of two errors, and it stems from there being no justification chosen for why the distribution is not taxable to the State of Alabama.  The Tax Payer ("Me") cannot type in a reason, but can only choose from a list of reasons shown in a drop-down list, ...none of which speak to a rollover distribution which in my case is an institution to institution transfer which incurs no tax liability.  So, I cannot transmit my return due to these errors.  The justification for being nontaxable is a TurboTax glitch, because it requires me to select a choice that isn't there which matches my 1099-R.  Does anyone have suggestions, besides foregoing electronic transmission and just sending a paper copy in?

[AmyC]

You can file electronically. Let me explain why and how.

1. For a 1099-R, if you are missing part of the state information, it is best to make all the state boxes blank. If you had state tax withheld, it can be entered under Federal Deductions and Credits, Other Taxes Paid.

2. A rollover should not have tax withheld. It should have code G (maybe H) for a direct rollover so you don't have these issues. If you took the money and rolled it over, then you would have to answer the questions in the program that you took the money and rolled it over into another account.

3. AL should know it is a rollover from the federal section and not be asking those questions. Let me get you through.

Let's double check your forms and entry - remember the states and federal already have the forms, we need the program to get the right numbers on the tax forms.

1. Box 1 Gross distribution $xxx
2. Box 2 Taxable amount $0 or blank or not determined
3. Box 7 code G - pretax money (could be code H after tax money)
4. Boxes 14-16 make blank
5. continue
6. no not IRA
7. box 2 taxable amount, enter zero
8. not public safety officer
9. select qualified plan
10. another type of qualified plan
11. RMD zero
12. I moved the money to another retirement account
13. I rolled over all of the money to an IRA or another retirement account
14. You won't have to pay tax on your rollover statement
15. not a disaster
16. done

State entry:  remember, only the tax forms go to the state, not the program, questions or worksheets

1. Alabama special handling of this distribution - Is it not taxed by Alabaman - select no
2. The next screen shows the list of 1099-R forms and which ones are taxable.
3. My 1099-R, senior, correctly shows as nontaxable in AL.
4. If yours shows a taxable amount, select edit. Special handling- select NO, next page asks for the taxable amount, enter zero.

[rdhdiver]

I have since figured out the issue, but didn't really do much different.  First thing I should note is that I enter data only via "interview" or "walk me through" mode, as I never just open forms and populate them.  I import forms where I can, as well.  As for my previous problem, I went in and deleted my 1099-R forms and re-created them, just to see if this fixed things.  I wanted to make sure I didn't use CSR-1099-R instead of 1099-R.  I have the CSR variety as well.  I still had the issues but noticed that the support worksheet (where the errors were located) were not deleted with deletion of 1099s.  What I did was to edit fields in the worksheet, to remove data that caused the errors.  Then, I re-created the 1099 forms and entered the data as provided.  Magically, the errors for the two 1099-R rollover forms that asked for justification for why they are not to be taxed by Alabama went away.  As for the error associated with missing Payer's State Number, I just created an alphanumeric code like the actual one that was provided by another 1099-R rollover form, and made it unique to the 1099-R that didn't have the code provided.  I just gave it a code that had "...NotProvied" in the coding I entered.  It accepted it without errors.  So, I am good.  I just don't know what initially caused the System to balk at me for not having a justifcation provided.  I entered the same info originally as I did when i resubmitted the info (creation of 1099-R).  My issue is resolved.  Thanks for your replies!!!!!!!!!!

[rdhdiver]

I'm new to the User Forum game, but not new to TurboTax.  I consider myself somewhat of an expert in the tool.  My other posts/replies on this topic may not have gone to all those who have responded to my own follow-up posts, so you may not be aware of what I have done.  I always use the "Guide Me" method and did so with this year's returns (Fed and State).  I wasn't able to import my two (2) 1099-R forms specific to 401-K rollover to Retirement IRA distributions, so I had to enter the 1099-Rs based on the forms I had "in hand".  There was nothing in the forms that were omitted in TurboTax, and this includes all of the questions associated with the form that one gets after entering the data.  There was one error that was simply TurboTax "demanding" an entry in the Box 15 "Payer's State No." portion of that box.  Box 15 requires the State "abbreviation" PLUS the Payer's State Number.  For one of my 1099-R forms that information was not provided and the "Payer would not or could not provide that info.  My other rollover 1099-R came with that info provided.  SOLUTION:  I just put in filler info with "Not_Provided" in that name.  It got rid of that error.  The perplexing errors were that for both 1099-R forms designated as rollover distributions, not involving ROTH IRAs, and with all marking correct, there was a WORKSHEET in the State Tax portion titled --- "Pen Excl Wks", that had these errors including the two (2) error that required me to select from drop-down list (in this worksheet) to justify why the rollovers were not taxable on my State Return.  I gave you the abbreviation, but it is titled - "Pensions/Annuities/IRAs Income Exclusion Worksheet.  Even after deleting / removing my 1099-R forms and re-entering them, the worksheet with error did not lose its error entries.  So, I had to clear out worksheet info relative to these 1099-Rs and then re-enter my 1099-Rs.  Magically, this seemed to fix the issue.  It altered some of the "X" markings in the worksheet, meaning TurboTax Software did this, not me.  In any event.  the issue went away.