Weird 1099-R

[JackieCPA]

So my client from here in MN has a 1099-R. There is state withholding showing but it says it is from Texas. 

Normally, you would file with the other state to get the withholding back since they wouldn't owe taxes with the state they didn't live in.

However, Texas doesn't have a state income tax return to file to get that money withheld back.

Any advice? 

[JohnH]

What state issued the state ID number on the 1099-R?
 

[JackieCPA]

It just says Texas with no state ID number.

[Lion EA]

Ask your client. Look at his paystubs. Have client talk to his payroll department.

[JackieCPA]

It's an IRA distribution.

The bank says that it is correct and withheld from Texas state. 

I'll have to do some research to see how to get that back seeing how Texas doesn't have a state income tax return. 

[Lion EA]

Wow! Client will need to ask his former employer where the money went, what agency in Texas. Follow the money!

[JohnH]

Sounds like your client needs to have a sit-down with someone in authority at the bank (or else just forget about the presumed Texas withholding).  I'm not seeing how this is your problem other than to inform the client. 

[Lion EA]

Oops, "former employer" = "bank." Yes have your client do what John says or give you permission to talk with the bank. (Charge your client)

[JackieCPA]

SHe had the bank call me. They said that "Yup it was submitted to Texas". She has to call the big branch bank to see if there was even an ID number for it or if it was submitted as sales tax or something since they don't have income tax. I just don't see how it was even an option for the bank to withhold income tax from texas.

But of course, the bank makes it seem like my problem because "I'm the tax preparer".