1099-R State Taxes Withheld for Roth Conversion - Reporting Requirements?

Thanks for the response! That makes sense, but I'm still a bit confused. If my contributions were all after-tax and I already paid tax on that money years ago, would my state try to tax me again on the same money? And what exactly should I put for the state distribution amount since box 16 is blank?

You generally shouldn't be double-taxed on the same money. Most states follow the federal tax treatment where you don't pay tax again on after-tax contributions. Your Form 8606 helps establish your tax basis to prevent double taxation. For the state distribution amount, you would typically report the same amount that's in Box 2 of your 1099-R (the taxable amount). If Box 16 is blank, states usually default to using the federal amount. Just make sure to attach a copy of your Form 8606 to your state return if required, as this documents your after-tax basis.

How does this actually work? Do you just upload your 1099-R and it tells you what to do? I've got a similar situation but with a 401k to Roth IRA conversion and I'm totally lost on the state reporting part.

Sounds interesting but I'm skeptical. Does it actually give you state-specific guidance? Because I know different states handle retirement distributions differently (some states don't tax retirement income at all, while others fully tax it).

You upload your tax documents and it analyzes them right away. It breaks down exactly what each box means and gives you state-specific guidance. The system recognized my 1099-R was for a Roth conversion and explained the different reporting requirements. Yes, it definitely provides state-specific information. That was actually the most helpful part for me. It flagged that my state has different rules than federal for certain types of retirement distributions and explained exactly how to report it on my state return. It covers all 50 states and their different approaches to retirement income taxation.

Wait, so you pay someone else to wait on hold for you? How does that even work? Wouldn't the IRS or state tax department just hang up when they realize it's not you who's been waiting?

I don't know about this. Sounds like a way to jump the line while everyone else waits. Plus how would the tax agent even know they're talking to the right person if you weren't the one who called initially? I doubt state tax departments would be okay with this.

They don't actually talk to the agent for you. The service waits on hold in your place, and when an agent comes on the line, you get a call to connect you directly with that agent. You do all the talking yourself. It's not about jumping any lines - you're still in the same queue as everyone else. The difference is you don't have to personally sit there listening to hold music for hours. The system just alerts you when it's your turn and connects you. The tax departments don't care because you're the one who ends up talking to them.

That's super helpful! Did you just put the same amount from box 2 on your state return even though box 16 was blank? And did you have to file any special forms with your state return?

Yes, I used the same amount from box 2 on my state return. Most state forms are designed to pull numbers directly from your federal return anyway. I didn't need any special state forms, but I did include a copy of my Form 8606 with my state return to document the non-deductible contributions. My state doesn't have its own version of Form 8606, so they rely on the federal form. It might be different in your state though, so you might want to check your state's tax department website for any specific forms related to retirement distributions.

I used TurboTax last year for this exact scenario. It correctly handled the state portion when I entered the 1099-R information. The software asked if the distribution was reported to my state, and I selected "yes" even though box 16 was blank. It then properly reported it on my state return without taxing the after-tax portion. Just make sure your 8606 history is accurate in the software too.

Thank you for sharing your experience! This is really reassuring to hear from someone who went through the exact same situation. I was getting worried that I might be missing something important since those boxes were blank. Your point about checking the state-specific guidance is spot on - I've been looking at general information but haven't dug into my state's specific rules yet. Did you find that your state's website had clear instructions about Roth conversions specifically, or was it more general retirement distribution guidance that you had to interpret? Also, when you called your state tax department, were you able to get through quickly or did you have to wait on hold for a long time? I'm debating whether to try calling them directly or just follow the general reporting guidance.

My state's website had a dedicated section for retirement distributions that included specific examples for Roth conversions, which was really helpful. They even had a FAQ that addressed the exact scenario of blank state withholding boxes on 1099-Rs for conversions. As for calling the state tax department - I got lucky and only waited about 45 minutes, but I called early in the morning on a Tuesday. I've heard from others that wait times can be 2+ hours during busy periods. If you do decide to call, I'd suggest trying early morning or late afternoon on weekdays to avoid peak times. Honestly, if your state's website has clear guidance (like mine did), you might not even need to call. The key things to look for are their instructions on reporting retirement distributions and whether they have any special treatment for after-tax conversions. Most states will want you to report the full conversion amount but won't tax the portion that represents your after-tax contributions.

My state's website had a specific section on retirement distributions that included Roth conversions, though it wasn't super detailed. The general guidance was helpful but I still had questions about the specifics of my situation. As for calling the state tax department - I actually used one of those hold-waiting services that was mentioned earlier in this thread (Claimyr) because I didn't want to sit on hold for hours. It worked great and I got connected to an agent in about 30 minutes instead of the 2+ hour wait time they quoted when I first called. The agent was able to confirm exactly how to report my conversion and which forms I needed. If you do decide to call, I'd definitely recommend using a service like that to avoid the long hold times. The peace of mind from talking to an actual state tax expert was worth it for me, especially since Roth conversion reporting can vary so much between states.

My state's website actually had pretty detailed guidance specifically about Roth conversions, but it was buried in their retirement income publication rather than being prominently featured. I had to search through several PDF documents to find the relevant sections. As for calling the state tax department - I waited on hold for about 90 minutes before getting through to someone who could help. It was frustrating, but the agent I spoke with was very knowledgeable and walked me through exactly how to report the conversion on my state return. She confirmed that even with blank boxes 14 and 16, the conversion amount still needed to be reported using the amount from box 2. If you decide to call, I'd recommend having your 1099-R and Form 8606 handy, along with any specific questions written down. The agent was able to give me state-specific guidance that I couldn't find anywhere online. Given what some others mentioned about services that wait on hold for you, that might be worth considering if you don't want to spend the time waiting yourself.

My state's website had pretty general retirement distribution guidance, but it did mention Roth conversions specifically in their FAQ section. The key thing I learned is that most states default to using the federal tax treatment unless they have specific exceptions. As for calling the state tax department - I actually had a terrible experience with the wait times! I spent over 2 hours on hold the first time I tried, and then got disconnected. That's actually why I was interested when someone mentioned that Claimyr service earlier in this thread - wish I had known about it when I was dealing with this issue. If you do decide to call, I'd recommend trying early in the morning right when they open, or late in the afternoon. Mid-morning and lunch time seemed to have the worst wait times. But honestly, if you have clear documentation with your Form 8606 showing the after-tax basis, following the general reporting guidance on your state's website should be sufficient. The main thing is just making sure you report the distribution amount even though no state taxes were withheld. Better to report it and owe nothing than to not report it and have questions later!