Form 1099-R: Box 14a error

[dhyen]

I entered every field exactly as is from my Form 1099-R, but the TurboTax error check is flagging "Box 14a should not be equal to or greater than the gross distribution amount."

The dollar amount in Box 14a on my Form 1099-R is equal to the dollar amount in Box 1 and Box 2a.

If I reduce the amount in Box 14a by 1 cent, then the error goes away, but then that's not the correct amount from my Form 1099-R.

I saw another post, that recommended copying the amount from Box 1 to Box 16 to fix this error.  I tried that but it did not work for me.

[SteamTrain]

@dhyen 

Who exactly issued that 1099-R?

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If your actual paper/PDF box 14a has the same value as box 1......then you are using the wrong form-type to report those $$.  You would need to delete that form, and re-enter it using the proper form-type

That would not be a 1099-R....that would be a CSF or CSA-1099-R that is issued by the Federal Office of Personnel Management (OPM)

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1)   A standard 1099-R has State "withholding" in box 14 and total state distribution in box 16.

2) A CSF- or CSA-1099-R from OPM has State "withholding" in box 12 and total state distribution in box 14.

[JulieS]

Box 14a on Form 1099-R is the amount of state tax withheld from your distribution. If that amount is the same as Box 1, that means your entire retirement distribution was withheld for state taxes. That doesn't sound right. 

Box 1 and box 16 are usually the same, but I would expect the amount in 14a to be much lower.

Can you clarify your question? Is box 14a the same as box 1 on your 1099-R?

Exactly what does the error message say?

[dhyen]

@SteamTrain the 1099-R is from an inherited IRA, and my financial planner applied all of the RMD to my state taxes.  I think that's why the amount in Box 14a is the same as the amount in Box 1.

I don't have any amount in Box 12 or Box 16.

I don't believe a CSF or CSA-1099-R applies to me.

[dhyen]

@JulieS  yes, the amount in Box 14a is exactly the same as the amount in Box 1 on my Form 1099-R.  The error message says: "Form 1099-R (CHARLES SCHWAB & CO., INC.): Box 14a should not be equal to or greater than the gross distribution amount."

[SteamTrain]

@dhyen

Owwww.....that's pretty unusual that the entire RMD was applied to withholding.   

Sometimes, a state, will not allow a person to e-file their tax return if the withholding is so large....usually set at somewhere between 20% -to50% of the total for the states that have such a limit......but that % limit is set by the states themselves.  Why?  Because the state wants to see the actual 1099-R form as proof that such a large withholding amount was actually done......which then requires mail-filing

Putting in a penny less in box 14 might just be what you have to do to get the form to work for correcting the supposed "error" in the software....but I don't know if the e-file for that state will eventually be blocked or not anyhow.   Since many of the amounts from all your various withholdings end up getting rounded to the nearest $1 anyhow, that penny is not likely to cause any problem. 

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Might be best to not take such a large % as withholding in future RMDs.....especially if you find out you have to mail-file the state forms because of that situation.  Mail-filed tax returns can take a long time to get processed.

[dhyen]

@SteamTrain I just checked my 2019 1099-R and it had the same situation.  State tax withheld was equal to Gross distribution, and TurboTax didn't have an issue with it.  Must be a new "feature" in 2021.  I'll go with the minus one penny work-around.

[Blessmama77]

Turbotax support help me, She told me to put Box 1 in box 16 and I was able to continue.  Yes 

[bbrafman]

My hard copy 1099-R has no box 14a. Box 14 is blank, there was no tax withheld. I am getting the error message you described and I want to know what to do. Is there a work around?

[DoninGA]

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@bbrafman wrote:

My hard copy 1099-R has no box 14a. Box 14 is blank, there was no tax withheld. I am getting the error message you described and I want to know what to do. Is there a work around?

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If there is no state taxes withheld in box 14 of the Form 1099-R then leave boxes 14, 15 and 16 blank (empty)

If you continue to get an error then delete the Form 1099-R and re-enter manually to correct the error.

[bbrafman]

It was a manual entry. I am so frustrated. I have tried so many things.

[DoninGA]

Okay...Try this.  Enter the amount from box 1 of the Form 1099-R in box 16.  See if the error persists.

[bbrafman]

Box 1 and box 16 on the hard copy form are the same. Box 14 is blank. On TT  I entered the same information, leaving the "state tax withheld" blank. I still got the error message. 

[CarissaM]

If you are still having the same issue, please follow the instructions here to contact us by phone. @bbrafman

[bbrafman]

Once I downloaded the updates, the issue was corrected and my returns were sent.