I filed in North Dakota last year, I am now retired living in Montana, do I have make changes on my tax return reflect that?

I filed return in both ND because I worked half of 2015.  In may of 2016 we retired and became residents of Montana.  On my return the state portion was confusing, I am not sure if I needed to reflect a residency change when I was asked.  At the end of the return portion because my wife received 329.00 form her 401 in final payout the state of Montana is asking about pension annuities and asking me to separate the with holdings....   It directed me to my Montana return on Form 2, but my return is from ND not MT.  Did I do something wrong during the process.....?

DS30
New Member

Retirement tax questions

It depends - If you move states in a prior year, you will only need to file a resident state income tax return during the current tax year.

So in your situation, if you were a resident of MT for the entire 2017 calendar year, you would report all income from all sourced (include an ND 401(k) distribution) on your MT resident state income tax return. The federal government has determined that retirement income is only taxed in your state of residency at the time the distribution was received (regardless of where the original 401(k) account was setup and funded). This is why you are being asked questions about a retirement distribution from an ND 401(k) account that was received while you were a resident of MT.

View solution in original post