1099-R State Taxes Withheld for Roth Conversion - Reporting Requirements?
Just got my 1099-R for my 2024 Roth conversion and I'm confused about state reporting. I converted from my traditional IRA to my Roth IRA last year, and the traditional IRA only had after-tax contributions (all tracked on Form 8606). Before doing the conversion, I had rolled the pre-tax growth portion to my employer's 401k plan (got a separate 1099-R for that transaction). Looking at the 1099-R for the Roth conversion now, and box 14 (state tax withheld) and box 16 (state distribution) are both showing zero/blank. Box 15 does show my state and the state ID number though. My question is: do I still need to report the full conversion amount from box 2 to my state on my tax return even though the 1099-R shows nothing in boxes 14 and 16? I'm worried about getting this wrong and having my state come after me later. Any help would be appreciated!
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Wesley Hallow
This is actually a common question with Roth conversions. The short answer is that most states will want you to report the conversion, even if there were no state taxes withheld. The 1099-R is primarily showing you that no state taxes were withheld at the time of the conversion, but that doesn't mean the transaction isn't reportable to your state. Since your traditional IRA contributions were after-tax (non-deductible), you likely won't owe additional tax on the conversion amount, but the transaction itself still needs to be reported. Your state tax return will typically have sections that mirror the federal return where you'll report this conversion. You'll need to include the 1099-R information, and your state will determine if any tax is due based on your state's specific rules for retirement distributions and conversions.
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Kennedy Morrison
•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?
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Wesley Hallow
•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.
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Justin Chang
After dealing with a similar situation last year, I found an amazing tool that helped clarify all my Roth conversion questions. I used https://taxr.ai to analyze my 1099-R forms and it specifically flagged the state tax reporting requirements for my Roth conversion. The tool literally scanned my documents and explained exactly how to report the distribution on both federal and state returns. It even highlighted that my state (New York) treats Roth conversions differently than the feds do for certain types of distributions. Saved me hours of research and potentially a big headache later!
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Grace Thomas
•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.
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Hunter Brighton
•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).
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Justin Chang
•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.
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Hunter Brighton
I was initially skeptical about using an AI tool for something as specific as Roth conversion state tax issues, but I gave https://taxr.ai a try after seeing it mentioned here. Honestly surprised by how helpful it was! I uploaded my 1099-R forms from a similar Roth conversion situation, and it immediately identified that my state (California) requires reporting the gross distribution even though no state tax was withheld. It even explained which state form lines to use and how to properly document the non-taxable portion. The state-specific guidance was spot on - even identified a special schedule my state requires for certain retirement transactions that my regular tax software didn't flag.
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Dylan Baskin
If you're still having trouble with figuring out the state tax part of your Roth conversion, you might want to try calling the state tax department directly. I tried that route last year with a similar issue and spent HOURS trying to get through to someone who could actually help. I eventually discovered https://claimyr.com which got me connected to my state tax agency in about 20 minutes instead of the typical 2+ hour wait. There's a demo video of how it works here: https://youtu.be/_kiP6q8DX5c that explains the process. Basically they wait on hold for you and call when an agent picks up. For something as specific as state tax treatment of Roth conversions with zero state withholding, talking to someone who knows your state's exact rules might be the safest bet.
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Lauren Wood
•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?
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Ellie Lopez
•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.
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Dylan Baskin
•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.
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Ellie Lopez
I was very skeptical about using a hold-waiting service for tax issues, but I tried Claimyr last week when I needed to talk to my state tax department about a Roth conversion reporting issue similar to yours. I was impressed! I had expected it might be problematic or that the state would refuse to talk to me, but it worked exactly as advertised. I got a call back when an agent was on the line (saved me sitting on hold for 1.5 hours according to their time estimate), and I was able to ask my specific questions about reporting Roth conversions with no state withholding. The agent confirmed I needed to report the distribution even with zeros in boxes 14 and 16, and explained which specific form to use for my state. Honestly wish I'd known about this service years ago for all those wasted hours on hold!
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Chad Winthrope
I just wanted to add that I had this exact same situation last year. Roth conversion from tIRA with only after-tax contributions, and boxes 14 and 16 were blank on my 1099-R. My accountant explained that the financial institution that processed your conversion isn't responsible for determining your state tax liability - they just report whether they withheld any state taxes (which they didn't in your case). You still need to report the distribution to your state, but since it was all after-tax contributions, you likely won't owe additional state tax on it. Just make sure you have your Form 8606 history to prove those were after-tax contributions if you ever get audited.
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Kennedy Morrison
•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?
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Chad Winthrope
•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.
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Paige Cantoni
Has anyone used TurboTax for reporting Roth conversions with blank state distribution boxes? Does it handle this situation correctly or do I need to override something?
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Kylo Ren
•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.
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Nina Fitzgerald
One important thing to note - if your state taxes retirement distributions differently than the federal government, you might need to make adjustments on your state return. For example, some states exempt retirement income up to certain limits, while others fully tax it regardless of whether it was taxed federally. Check your state's department of revenue website for specific guidance on Roth conversions. Most states have publications that explain their treatment of retirement distributions, including Roth conversions. That's the most reliable source rather than hoping a tax preparer gets it right.
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