- quote -

TurboTax is using the box 12 number to decide how much to deduct from
my fed taxable income when computing state taxable income. Maybe it
shouldn't be doing it this way, but it is (if I enter the box 2a
figure into
box 12, then it deducts that number instead).

- quote -

There was. But I tried the experiment of deleting the number in box
12,
and when I revisited the form, TurboTax had copied the box 2a number
into
box 12, which thus makes it compute the state taxable income properly.

- quote -

Fine. It's North Carolina, and the 1099-R is from TIAA-CREF, vendor
for
the state employees' "optional retirement program". A court case
called
the Bailey settlement says this money is state-tax free.

- quote -

Box 11 is the payer's state ID number on mine.

Bottom line is that I know the right thing to do, which increases my
state
taxable income by about $200 over what TurboTax wants to compute in
"conspiracy" with the incorrect 1099-R. But I imagine many NC
taxpayers
may not figure out what I did.

P.S. The reason I'm pretty convinced the 1099-R is not filled in
correctly is
that I have another 1099-R, not from TIAA-CREF but also with some
federally
tax-free income (so box 2a is less than box 1), which has the box 2a
number
in box 12. Oh, and there is no state witholding on that other 1099-
R.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

JGE wrote:

- quote -

The IRS couldn't care less about what is in boxes 10-15 of 1099-R
(except indirectly, if state/local taxes paid will be an itemized
deduction). If there was no state withholding, the payer's only error
was in filling in information in those boxes when they should have left
them blank, as many payers do.

- quote -

Don't enter anything into Turbotax for the state boxes if there was no
withholding.


- quote -

Keeping the name of your state a secret makes it very hard to give any
additional help.

- quote -

Are you using the correct "State Use Code" in Box 11 for certain states,
as directed by Turbotax help?

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 24, 5:00*pm, Harlan Lunsford <luns...[at]bellsouth.net> wrote:
- quote -

Some of the 1099-R income is tax-free (some after-tax contributrions
way
back when), so box 2a is a bit less than box 1. They copied the box
1
figure to box 12 (state distribution). It turns out that this
particular
income is ALL tax-free in my state. So TurboTax deducts the box 12
number from my federal taxable income when computing the state
taxable income. Thus it's deducting money from my federal taxable
income that never was part of my federal taxable income in the first
place, and thus my state taxable income is computed too low by the
amount by which box 1 exceeds box 2a. I notice that some other
1099-R forms have box 12 equal to box 2a, which is the way I believe
this one OUGHT to be.

So I can correct box 12 by hand, or I can just leave things be, in
which
case I'm paying about $20 too little state tax. No biggee. But
for the
thousands of people in my state in this situation, it could add up to
quite
a bit of money. So I'm tempted to be a good citizen and let the
state
DOR know what's up. But I'm wondering if I'll be sorry ...

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

JGE wrote:
- quote -

amount they did withhold for state tax? Were you shortchanged?

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I am in a bit of a conundrum.

I have noticed that one of my 1099-R reporters (a very large
and well-known insurance/annuity company indeed, thank you)
consistently makes an error in their reporting of state tax
information; by faithfully entering the numbers from this 1099-R
into TurboTax, I end up underpaying my state tax by a whopping
$20 or so - assuming that I'm correct that there's a problem, and
I'm fairly sure I am. I've checked, and they do this for each year
I've checked.

It's not a lot of money, but I suspect there are many thousands of
people in my state that are in the same situation.

What should I do ? Talk to the 1099-R issuer (they seem pretty
boneheaded when I talk to them on the phone about much of anything) ?
Talk to the state Dept. of Revenue ? Forget it ? Will I get
audited
every year for the rest of my life, beaten by thugs, whatever ???

Thanks !

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >