Yes ultimately solved, but it took a call to NY. At least the agreement between NY and NJ, and I imagine it’s the same with CT, is NY taxes your income from NY sources only. Capital gains, etc are taxed by your home state. So, it was recommended to me that wherever you lived on Jan 1 of the tax year would get the distribution tax for that year. This is because the 1/3 of your distribution is included as income each year for three years, so as far as the IRS etc is concerned you didn’t really “earn” the income until it becomes part of your income per the CARES Act changes.
So we took our distribution in June 2020, and moved a few months later into NJ. We paid our first 1/3 to NY for 2020 and paid the next 1/3 to NJ for 2021 (and our 2022 will go to NJ). Our part year resident form for NY in 2020 listed the gain as NY income, and we did not list it on our NY non-resident return this year (we still file in NY because of a job in NY).
