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March 15, 2021
Question

On 1099R, it's saying "state tax shouldn't be greater than gross distribution." Box 14 (state tax withheld) is much less than box 1 (gross distribution). What do I do?

  • March 15, 2021
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1 reply

March 15, 2021

You may have box 16 blank, which is for the amount of your state distribution. So, if you have an amount in box 14, it would be greater than the amount in box 16.  If your state distribution is the same as your federal distribution (which is likely), then enter the amount in box 1 in box 16 also.

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kspooner2Author
March 15, 2021

I've entered the amount for box 1 into box 16, and it is still giving the same error message on box 14. 

March 16, 2021

Sorry, you may need to delete the W-2 entry and re-enter it, sometimes when you change things the original error entry can get stuck in the program.

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