If box 16 on the 1099-R is blank, how do you correct Form OR-40 and document that Oregon States taxes were withheld as shown on 1099-R?

Forum|Forum|1 year ago
March 15, 2025
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When using TurboTax for Oregon State Taxes, Oregon State Taxes withheld on 1099R is not showing up on my form OR-40. TurboTax support said box 16 on 1099-R has to be filled but it is blank on my 1099-R and Oregon does not require this to be filled.

SteamTrain

Employee

Oregon may not require it, but for the software to work properly, it needs a value there .

Just enter the box 2a $$ amount in box 16....that is IF.....if box 2a has a non-zero number in it.

Otherwise copy box 1 into box 16, as long as you had no "after tax" contributions to that retirement vehicle.

If you did have some After-Tax contributions to it, then you need to put the Federally-taxable portion of box 1 into box 16 (i.e, whatever the Feds included as taxable income)

Essentially the state software is saying that you can't have state taxes withheld from nothing.

Yes, many providers of 1099-R forms always leave box 16 empty, apparently for a few reasons....but some software for some states require a number in there for the software to work correctly.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

user6141620Author

Thank you for the advice and help if the 1099-R box 16 is left blank. One does have to fill box 16 in for the amount shown in 2a. Oregon does not require box 16 to be filled. Your explanation was very helpful!

There is still a glitch in TurboTax for customers completing State taxes for Oregon. Oregon state taxes withheld on a 1099-R do not transfer when doing Oregon State taxes.

There is no drop down menu to indicate that Oregon state taxes were already paid for an RMD for the state of Oregon. To solve the problem I had to list the Oregon state taxes already paid for a RMD as coming from another state. I hope TurboTax fixes the software for Oregon Staye taxes.

SteamTrain

Employee

@user6141620

IF the state taxes withheld for OR did not transfer to the OR forms (they should just add into the total state withholding) even if they have been properly entered in box 14 of that 1099-R..

THEN....You really should call Customer Support to report the problem...it won't get fixed unless someone there confirms the problem.

But, make absolutely sure those $$ have not already added into line 32 of the main Oregon form OR-40 first.

How do I contact TurboTax?

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*