Income that California handles differently: IRA and Pension Distributions

Forum|Forum|5 years ago
February 5, 2021
1 reply
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IRA Distribution Adjustments.

Pension Adjustments.

I don't understand how to do this. I have both 1099-R, but I don't ever remember having to do this so I am confused as to what numbers to use.

Irene2805

On your 1099-R, compare the amounts in box 1 (gross distribution) and box 16 (state distribution) to see if they are the same or different.

In your California return, on the screens, Any IRA Distribution Adjustments and Any Pension or Annuity Adjustments, please do the following:

If box 1 and box 16 are the same, enter nothing and click Continue.
If box 1 is higher than box 16, enter the difference in the Subtraction column.
If box 1 is lower than box 16, enter the difference in the Addition column.

Click Continue when you are done.

njt-562

So one of my forms has nothing in Box 16 its just blank but State taxes were taken out so I feel like it's just a typo? The other form Box 1 and 16 are the same amount. However since I took these distributions for COVID reasons and the Federal Form 8915-E I'm splitting the income over 3 years, do I need to do something different in State adjustment piece and if so what do you put for the description?

mglauner

@njt-562 If Box 16 is blank on your 1099-R, but you have state taxes withheld, the amount of your State Distribution is probably the same as the Distribution in Box 1, You may want to verify this with the Payer, however.

If you are claiming your Distribution on your Federal return over a three-year period as allowed by the CARES Act, adjust the amount of your California State Distribution to match your Federal Distribution amount for 2020.

California is conforming to Federal guidelines regarding CARES Act. Click this link for more info on the California CARES Act.