I spoke to someone at Calif. State Franchise Tax Board who said that since CALSTRS (State teachers retirement system) insists on completing box 15 on the 1099R with the state payer's no, the income is reported and I have to pay taxes on the income. For over three years I have lived in Arkansas and pay taxes on my retirement income on a quarterly basis. there also. After filing my taxes and paying to both states, Arkansas reimburses me a good portion of what I paid them, but essentially, I am being taxed by two states on the same income until I get my tax return. I also have to pay more to get my taxes done as well as higher taxes in CA. The guy at the CA. tax board told me that the only way to change it is to convince CALSTRS to amend the 1099R which I have unsuccessfully tried to do for two years now.
