TurboTax is doing the final checking and says I need to fix the Payer's ZIP code. The zip code is right, but the state is wrong. How can I fix this?

[charlie1972]

This is a check on a Schedule B - Form 1099-INT.

[Tucker 16]

You can fix this in Turbo Tax. When you get the error message it should show you where the error is and it will let you correct the state and then it will match the zip code to that state. When you run an error check again after the change is made error should not show up again. If it does, I would check on the USPS web site for the zip code for the city and state on the address.

[RaifH · Accepted solution]

You cannot modify the state in the error check screen if it is flagging the zip code. To fix it, you will have to go back to the screen where you entered Form 1099-INT:

1. Exit out of the error check by selecting Federal on the left-hand side of the screen.
2. Go to Wages & Income > Interest and Dividends > Interest on 1099-INT
3. Edit the payer's information on the first screen.

The information entered on Form 1099-B will automatically be transferred to Schedule B if one is required. 

[charlie1972]

I was hoping this solution was going to work. However, it won't let me edit the payer's information on the first screen. It says "We pulled this info from your form, but we suggest doing a quick check to make sure everything matches." It has just the name of the financial institution and the 1099-INT belongs to... then it goes straight to line 1a.

Should I delete the 1099-INT and then reenter it?

[LenaH]

Yes. Please delete the imported 1099-INT and choose to type it in yourself. Once you reenter your 1099-INT, the error message will be cleared. 

Please follow the instructions below: 

1. Open your return.
2. Search 1099-INT with the magnifying glass tool.
3. On the page Let's import your tax info, click on enter a different way.
4. Click on your original 1099-INT.
5. Use the trash can icon to delete your 1099-INT. 
6. Click on Add Investments.
7. On the page Let's import your tax info, choose Enter a different way.
8. Click on the 1099-INT box.
9. Choose Type it in myself on the page How do you want to enter your 1099‑INT? 
10. Fill in the information as per your 1099-INT.

@charlie1972

[JTsoukalas]

I went through all the steps you outlined, as I am having the same problem. There is no place to input the state. But it's my address that is the problem. They keep listing my state as Colorado. Then telling me the zip code is wrong. The state is what is incorrect, but it's the program that is causing the problem, not me. Now it's saying I can't e-file, which was the whole reason I bought access to the software! HELP!! 

[DawnC]

Go back and correct your address in the My Info / Personal Information section.   If your state code is wrong - you will get the zip code error.   You can't fix it in the review; you have to go back to the federal address entry screen.   @JTsoukalas 

Exit the Review!

Check the 2-letter state code for that zip code.   Make sure the city and state match up to the zip code.  This error happens when the state code doesn't match what is on file with the IRS.  TurboTax follows the IRS for acceptable zip codes.  If the state code does not match the correct state, you will get an e-filing error.   Correcting the state code is usually the fix.  

• Check that the 2 letter state abbreviation is correct here USPS Two–Letter State and Possession Abbreviations   (most common error)
• Make sure you've entered the ZIP code in either 5-digit or 9-digit format, for example, 12345 or 12345-6789.
• Look up the correct ZIP code for the street address in question.

[JTsoukalas]

Sorry I didn't clarify. I'm having the EXACT same problem as OP. For some reason Turbo Tax is importing my state from my 1099-INT as Colorado, when it should be NY. I have no idea why this is happening, as nothing in my documentation has links to CO. And my bank is local here in NY. I do NOT want to file by mail. There has to be a way for someone in Turbo Tax to correct the issue. Everything else in my address from the photo capture is correct. The state is not. Frustrating. 

[DaveF1006]

Delete the 1099 INT entry that was imported and then manually input the form to see if this will clear up the error.

1. Go to federal
2. Wages and income
3. Interest and Dividends
4. Interest on 1099 INT
5. In the first screen, delete the entry.  
6. After deleting, select add interest income button again
7. When it asks how you would like to enter, indicate you type this in yourself

Please, let us know if this works.

@JTsoukalas 

[JTsoukalas]

I have done that several times. Each time it shows my state as CO and tells me the zip code is wrong. I have no idea what the problem is. When it asks for the info from the 1099-INT, entering my address is not among the blanks. I don't know where the breakdown is...

[JamesG1]

What address is causing the problem?  Is it the address on your IRS form 1040 income tax return?  Or somewhere else?

In TurboTax Online, the address on the IRS form 1040 income tax return may be viewed at My Info down the left side of the screen.

Select Edit to the right of Mailing address.

• First, make sure that Type of mailing address is US address.
• Second, change the State from what is showing to Select a state.  Then change it back to the correct state.
• Finally, re-enter the zip code.  Click Continue.
• Do you see What address do you want to use?  Verify that the Standard format is correct.  Continue.

Or is the source of the error another address?

@JTsoukalas 

[JTsoukalas]

I'm not sure if you read my prior posts... I have outlined that it is the 1099-INT form that is causing the problem. I have manually added the information several times, and it still gives the same error message. The only info it allows me to input is the payer's name and the amount. My information is being automatically added, and the state is incorrect. Everywhere else on my 1040 and all other 1099-INT forms and everywhere else, my state is listed correctly as NY. This ONE form refuses to put NY and instead inputs CO. I have never lived there. It's beyond annoying. 

[MarilynG1]

Yes, that is very strange.  Type '1099-Int' in the Search area, then 'Jump to 1099-Int'.  At the 1099-Int Summary Page, do you have any unidentified entries that you can delete? 

If you're in TurboTax Online, I would advise deleting the incorrect 1099-Int, closing TurboTax, clear your Cache and Cookies, and return to manually add the 1099-Int.

If you're in TurboTax Desktop, go to FORMS and check the Ownership on the 1099-Int Worksheet; should be either TP, Spouse, or Both.  In Box 8 there is an entry for exempt interest allocation, and CO may be entered there inadvertently.

If this doesn't resolve your issue, please Contact TurboTax Support.

@JTsoukalas