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Level 1
April 15, 2026
Question

I started distributions from my retirement account from another state. I am under the amount that would require tax payment. Do I still need to file a nonresident return?

  • April 15, 2026
  • 1 reply
  • 55 views
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1 reply

RachelW33
Alumni - Expert
Alumni - Expert
April 17, 2026

Assuming you started distributions from your retirement account from another state after you permanently moved and established residency in a new state, you do not need to file a nonresident return for that income. 

 

Under the Pension Source Act (4 U.S.C. § 114), states are banned from taxing retirement income for anyone who isn't a resident there anymore. Even if you earned that money while working in your old state, they lose the right to tax it the moment you officially move out.

 

 

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