KathrynG3
Expert Alumni

State tax filing

Since only 1/3 has been reported on the Federal return, the remainder of the distribution will be included on the federal return in 2021 and 2022.

 

Separately, for the state, since 100% of the income was reported to Oregon in 2020, and since it cannot be double taxed, your distribution should be identified as Oregon-sourced in New York for 2020.

 

The Federal Adjusted Gross Income will include 1/3 of the distribution in 2021 and 2022, respectively. This should be removed from the state taxation because it was already taxed.

 

For 2020: File Part-year resident returns in OR and NY.

For 2021 and 2022: File the Resident return in NY, and if necessary, file Nonresident returns for OR to allocate the 1/3 distribution to Oregon. In the OR return, deduct the distribution since it was already 100% reported in 2020.

 

You will need to keep careful records of when the distribution was received, identifying it clearly as sourced in Oregon. Retirement income is only taxable in the state of residence where it was received.

 

@Hadar