I had the entire (small) gross distribution of an RMD withheld to California. Turbo Tax Premier is telling me box 14a can't be greater than or equal to box 1 (gross distribution).
I understand why it can't be > the amount distributed. But why can't all of the distribution be withheld at the state level? I mean, it was send to CA so why is TT complaining?
Searching forums I saw a lot of NY residences having this issue and the fix was to make sure box 16 ("state distribution") = box 1. This is not working for me on my 2023 return.
Also note, I'm not seeing this error at E-Filing time (haven't gotten that far); I'm being told about it while doing a Federal review ("Smart Check") while still on the "Federal Taxes" tab.
Thanks.
You could try reducing the CA withholding amount by a penny or two, to see what happens.
(How small was the actual distribution and withholding?)
BUT
Many states limit e-filing tax returns with state withholding that exceeds some certain percentage of the gross distribution. Like 25% or 50% of the gross. Usually because they suspect that in the majority of cases, it might well be a mis-entry by the taxpayer (like accidentally double-keying the actual $123 as $1123 ). In such cases, if such a state limit is in effect, then e-file is blocked, but print-mail-filing with copies of all the forms showing state withholding, thus proves that state withholding is in-fact what was on those forms. (I don't know what CA allows)
I have found that I "pass" the Smart Check if I lower the amount in 14a be enough to get it below the dollar amount in box 1. So, box 1= 123.45; make box 14a = 122.99.
I wonder if I will then still run into the E-File issue you mention. Anyone here successfully done a CA E-File with box 1 nearly equal to box 14a?
@Bsch4477 Do you happen to know this?
Does CA allow e-filing of CA tax returns if CA withholding is nearly 100% of the gross distribution?
All you can do is try to efile again. You didn't have any federal withholding taken out?
I have two inherited IRAs, and had the larger one withheld for Federal (no issues) and the smaller one for California (possible problem, as I'm finding out).
Anyone here from Intuit who can say if what I'm seeing is a bug, or something that will actually prevent me from CA E-Filing? Thanks.