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June 19, 2024
Question

Software Bug in TurboTax 2023 Premier : 1099-R IRA State Tax Withheld

  • June 19, 2024
  • 4 replies
  • 0 views

There is a critical software bug in TurboTax 2023 Premier (Windows edition) related to the 1099-R IRA form and the state tax withheld. Specifically, the software is not including the state tax paid entry from the 1099-R IRA form in the total state tax calculations.

Steps to Reproduce:

  1. Open TurboTax 2023 Premier (Windows edition).
  2. Navigate to the section for entering 1099-R forms.
  3. Enter all relevant details, including the amount of state tax withheld.
  4. Complete the form and proceed to the state tax calculation summary.

Expected Behavior: The state tax withheld as entered in the 1099-R IRA form should be included in the total state tax calculations.

Actual Behavior: The software ignores the state tax withheld entry from the 1099-R IRA form, and it is not reflected in the total state tax calculations.

Impact: This bug causes incorrect state tax calculations, which can lead to underpayment or overpayment of state taxes. This is a serious issue that needs immediate attention.

Additional Information:

  • TurboTax version: 2023 Premier (Windows edition)
  • Operating System: Windows 11
  • Any recent updates installed: Yes (all of them)
  • Any error messages displayed: None

Please address and fix this error as soon as possible. Thank you.

    4 replies

    VolvoGirl
    Employee
    June 19, 2024

    Did you enter the right state in box 15?  Try deleting the 1099R and enter it again MANUALLY.    That usually clears something out.

    hansrx7Author
    June 19, 2024

    Yes right box (#15). I deleted it and entered it manually but it is simply not taking it. This is for California in state1 box15.

    DoninGA
    Employee
    June 19, 2024

    Which state?

     

    Delete the Form 1099-R and re-enter manually.

    The state taxes withheld on the Form 1099-R box 14 for the state listed in box 15 will flow to the state tax return as state taxes withheld.

     

    Tested using 2023 TurboTax Premier edition with all the latest updates.  The state taxes withheld on the Form 1099-R transferred to the state tax return with no issues.

    hansrx7Author
    June 19, 2024

    California

    VolvoGirl
    Employee
    June 19, 2024

    OK I have California too.  After you  re entered the whole 1099R did you go to the State tab and start start over for it to update?  And you switched to Forms to check the 540 line 71 for withholding?  What did you enter for box 14 withholding?  Did you also fill in box 16?  Box 16 might be blank then you should enter the same as box 1.  

     

    Have you updated both the program and your Windows?  No matter what I do I can not make CA ignore it.  

    SteamTrain
    Employee
    June 19, 2024

    Worked OK for me for an NC tax return.

    Windows Premier Desktop:  Fed +NC

    10,000 entered as a 1099-R  (box 1 & 2a)

    2,000 Fed Withholding  (box 4)

    500 NC withholding (box 14)

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
    VolvoGirl
    Employee
    June 19, 2024

    And no problem on my Windows 10 Home & Business Desktop program on all my 1099R forms.  Federal and California.  And my friend’s Mac Premier, California.