I have a deferred compensation plan that was designated to be paid out over a 10 year period. I received the first payout in 2021 while a resident of California. I moved from California to a tax free state (Tennessee) in 2022. The W-2 I received from my former employer in 2022 continued to have California state tax withheld despite the fact that I had moved prior to the distribution. My question is two-fold: 1) Given that I originally elected a 10 -year payout period, is the income still taxable in California since I initiated the payouts back in 2021 while a resident of California or are the payouts considered tax free for the remaining 9 year payout period after my move to Tennessee? 2) How can I make a correction in Turbo Tax to remove it as taxable income on my 2022 California non-resident tax return?
