I receive the error: "State tax shouldn't be greater than gross distribution" when completing 1099-R form as received. How do I avoid error? If $0.01 less, it works.

Forum|Forum|1 year ago
March 2, 2025
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My Roth conversion was split into 2 1099-R's from ETrade. One for distribution and one for tax withheld. On the tax withheld 1099-R, I get the error situation as described and it will not allow me to proceed unless I reduce by $0.01. State tax withheld + fed tax withheld = gross distribution = taxable amount.

MonikaK1

For the information returns for different types of income, such as 1099-R and W-2, TurboTax will recognize an error if the state tax withheld is more than the state distribution.

In the situation you describe, see if you can make both the distribution and withholding entries on the same 1099-R screen in TurboTax. This should resolve the issue.

See this tax tips article for more information about Form 1099-R.

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