How do I fix the "New York State withholdings cannot be greater than or equal to gross distribution or state distribution" error on my 1099-R?
If you entered a Form 1099-R and received this message New York State withholdings cannot be greater than or equal to gross distribution or state distribution, it usually means Box 16 (State distribution) is missing or blank.
What causes this issue?
New York requires that Box 16 must be greater than Box 14. However, many 1099-R forms are issued with Box 16 blank.
Box 14 = NY state tax withheld
Box 16 = State distribution amount
How can I fix it?
Follow these steps:
Navigate to the 1099-R section:
TurboTax Online/Mobile: Go to 1099-R.
TurboTax Desktop: Select Search Topics. Search for and select 1099-R.
Locate Box 16 (State distribution).
Enter an amount in Box 16:
Enter the amount from Box 2a (Taxable amount).
If Box 2a is blank, enter the amount from Box 1 (Gross distribution).
Continue through Review again.
