I received a 2021 W-2 for monthly SERP distributions from a former employer (20+ years ago) located in Minnesota. These distributions will continue for life (i.e., like a pension, but reported on Form W-2). My residence has been Virginia for the past 20 years. I elected to take reduced executive salary in order to qualify for the distributions.
My view is that these distributions fall under the definition of a "deferred compensation program... with distributions [spread] over a period of ten years or more". If so, shouldn't distributions be taxed in the state of residence (i.e., Virginia) and not the state where I once worked? About 3% of the total was withheld for MN state tax. I would like to file for a refund of the full amount withheld. Is my thinking on track? How should I flag this in state TurboTax?
