Virginia Income Tax Problem

[RetireBy90]

Just spent an hour on the phone with Virginia tax man. I made a mistake, included my tax payment to go with the 2019 tax return as a 2020 estimated tax payment. OK, so my bad. But numbers still didn’t add up with what they have. Turns out an Army pension has $600 withholding ($50/month) and they didn’t have the $600 withholding recorded. Now I must ask, how can you show the income from the same form but not withholding? I faxed another copy of 1099-R and will see if they accept and send me another $600 refund.
Had the same issue with IRS few years back. When I pointed out that they had the income but not federal withholding and asked how that was possible the tone became defensive so this time I kept quiet and just asked what to do to resolve the discrepancy. Hope that helps. They were very helpful till we narrowed it down to this issue.
Just wanted to get it off my chest. Thanks for opportunity

 

[SecondCor521]

Someone types in the information from your 1099-R into their tax preparation program. It's a common error to type in only some of the information. Missing state withholding is an even easier mistake to make IMHO.

One thing that helps is a second set of eyes, and even that can miss errors.

The ultimate solution is for the taxpayer (you) to carefully review the prepared return and make sure it is accurate before you sign on the dotted line. This would include making sure all income is reported, all withholding has been entered, that you're entitled to all deductions and credits claimed, that SSNs and bank information is correct, etc. etc.

There is a wall of text above your signature that you've examined the return and confirmed it is accurate. The tax people try to do their best, but ultimately it's the taxpayer's responsibility.

That being said, I'd expect the Virginia taxman to fix their mistake on their own dime if the original copy of the 1099-R that you provided did in fact have the federal withholding number on there, which it almost certainly did.

 

[Sunset]

I had a similar issue with IL, they disallowed my tax deduction for something they should know I have.

Instead they take the easy route that maximizes their income, simply deny and let the tax payor prove the deduction is existing.

Now I e-file, so they won't mis-type my tax return entries anymore.

 

[RetireBy90]

That is the part I don’t understand, I did state file first time this year. The 1099 had state withholding and I checked TT, it is on there and on the total withholding my return had. I’m still going through TT data for another item, my records showed $50 more withholding on a RMD from beneficiary IRA than state showed. I’ll confirm I entered correct info tomorrow on that issue.
At least they walked through each withholding with me so I could find the discrepancies.