Box 16 on Form 1099-R is labeled “State distribution,” and it shows the portion of your retirement payout that the payer is reporting to your state as potentially taxable. For most people the figure matches Box 1, the gross distribution, but it can be lower when state law shields part of the income. It is the number you carry to the retirement income line of your state return, before applying any exclusion your state allows.
What Box 16 Reports
The payer fills in Box 16 based on the state it has on file for you, and the figure is transmitted to that state’s revenue department for matching against your return. It sits inside a small cluster of state-level boxes that work together:
- Box 14, State tax withheld: the amount of state income tax the payer already deducted from the distribution. It counts as a prepayment against your final state tax bill.
- Box 15, State/Payer’s state no.: the state abbreviation and the payer’s identification number in that state. Your state uses this to match your return to the payer’s filing.
- Box 16, State distribution: the amount the payer is reporting as reportable to that state.
Boxes 14 through 19 have room for two states, separated by a broken line. If you moved during the year or had withholding sent to more than one state, the second column (Boxes 17, 18, and 19) covers local tax withheld, the locality name, and the local or second-state distribution.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 (2025)
Why Box 16 May Not Match Box 1
Box 1 is the gross distribution. Box 2a is the federally taxable portion.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 (2025) Box 16 often equals Box 1, meaning the payer is treating the whole distribution as reportable at the state level. When it comes in lower, the payer has usually already accounted for something the state does not tax.
Whether the payer reduces Box 16 or leaves the full amount for you to adjust on your return depends on the state and the type of plan. Some states expect a reduced figure in the box itself; others expect the full amount and rely on you to claim the exclusion when you file.
Public Pensions and Similar Carve-Outs
Distributions from state and local government pension plans are fully exempt from state income tax in some jurisdictions, while 401(k) and traditional IRA distributions from private employers get taxed at ordinary rates. A handful of states carve out partial or full exclusions for military retirement pay. These carve-outs are the most common reason Box 16 comes in below Box 1.
Roth IRA Distributions
Qualified Roth IRA distributions, meaning those taken after age 59½ and at least five years after the first contribution, are tax-free at the federal level.2Internal Revenue Service. Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs) Most states follow the federal treatment, so a qualified Roth distribution can show $0 in both Box 2a and Box 16. Non-qualified Roth distributions are different: the earnings portion may be taxable federally, and states apply their own rules to determine what share is taxable at the state level.
Putting Box 16 on Your State Return
The mechanics are simple once you know which box goes where. Enter the Box 16 amount on the retirement income line of your state return. Carry the Box 15 payer ID to the field your state form requests. Report the Box 14 withholding on the line where your state credits prepaid taxes. The withholding reduces what you owe dollar-for-dollar, or increases your refund.
Box 16 is the starting number, not the final one. Most states that tax retirement income also offer a subtraction on the return itself. The common forms these take:
- Age-based exclusions. Some states let taxpayers above a set age, often 55, 59½, or 65, exclude a fixed dollar amount of retirement income. The caps range from a few thousand dollars to over $20,000 depending on the state and income type.
- Pension-type exclusions. Certain states exempt government pensions entirely while taxing private-sector distributions, or vice versa.
- Income phase-outs. Several states reduce or eliminate the exclusion once total income crosses a threshold, so higher earners may not benefit.
You claim the adjustment as a subtraction on the state return. If Box 16 shows $50,000 and your state allows a $15,000 pension exclusion, you subtract $15,000 on the designated line and pay state tax on the remaining $35,000. The line number and form name vary by state, so pull your state’s income tax instructions rather than guessing.
A few states go further. Illinois, Iowa, Mississippi, and Pennsylvania have state income taxes but do not tax pension, 401(k), or IRA income. Box 16 may still show a distribution amount in those states, but you subtract the whole figure and owe nothing on it. Legislatures adjust these exclusions regularly, so check the current instructions each year.
When Box 16 Is Blank
A blank Box 16 usually has an innocent explanation.
- No state income tax. Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — do not levy a traditional individual income tax. Payers have no state authority to report to.
- Missing state information at the payer. Some payers, including federal agencies like the Pension Benefit Guaranty Corporation, do not withhold state taxes and may leave Box 16 empty regardless of where you live.
If you live in a state that taxes income and Box 16 is empty, you are still responsible for reporting the distribution. Use the Box 1 gross amount as your state starting point, then apply whatever exclusion you qualify for. The blank box does not make the income exempt.
If You Moved During the Year
You may receive a single 1099-R with both states shown side by side in Boxes 14 through 19, or two separate forms.1Internal Revenue Service. Instructions for Forms 1099-R and 5498 (2025) When both columns on one form are filled, the first set (14, 15, and 16) covers one state and the second set (17, 18, and 19) covers the other.
Each state generally taxes only the portion of the distribution attributable to the months you were a resident. If you received $60,000 in pension payments across a year and lived in State A for eight months and State B for four, each state usually taxes its share. You will file a part-year resident return in both, reporting the applicable Box 16 figure from each column on the corresponding form.
Federal law under 4 U.S.C. § 114 bars states from taxing certain retirement income paid to nonresidents. Once you leave a state, that state generally cannot reach back to tax pension or 401(k) distributions just because the income was earned there. The protection covers most qualified retirement plans, IRAs, and government deferred compensation plans.
If Box 16 Is Wrong
Errors happen. A payer might list the wrong state, report the full gross when the state expects a reduced figure, or use an outdated address. Contact the payer and request a corrected 1099-R.3Internal Revenue Service. Topic No. 154, Form W-2 and Form 1099-R (What to Do if Incorrect or Not Received) Payers are required to issue corrections when errors are brought to their attention.
If the deadline is close and the corrected form has not arrived, you can file using figures you can back up from your own records: plan statements, withdrawal confirmations, and withholding notices. If a corrected form arrives after you file and the numbers differ from what you reported, file an amended return using Form 1040-X for federal and the equivalent form for your state.3Internal Revenue Service. Topic No. 154, Form W-2 and Form 1099-R (What to Do if Incorrect or Not Received)
Do not leave the discrepancy alone. State tax authorities match your return against the payer’s electronic filing, and a mismatch is one of the fastest ways to trigger a notice.