Questionable 1099-R

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My wife & I lived in 2 states during 2019. She received 2 separate 1099-R's from her employer. The 1st included the full annual amount of her pension payments in Box 1 (Gross Distribution) & Box 2a (Taxable Amount) and one state's distribution amount in Box 14 (we did not withhold any taxes fro this state). The 2nd 1099-R shows $0.00 in Box 1 and Box 2a and the 2nd state's distribution and amount withheld. I entered these into Turbo Tax Deluxe as 2 separate documents but Turbo Tax Deluxe won't let me e-file until I correct this. I believe it is saying that on the 2nd 1099-R that I could not have withheld any state tax if there was no gross distribution.

How do I proceed?

Can I input these into Turbo Tax Deluxe as if they were one document? Will this raise an audit flag within the IRS?

JotikaT2Answer

Alumni - Expert

It depends.

If the two separate 1099-R forms are for the same distribution, you can go ahead and add the state to your input on the 1099-R that has the distribution amounts in boxes 1 and 2.

On your 1099-R input, you can add payments made to more than one state on the same input screen as shown below.

State input

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JotikaT2