1099-R: Retirement income from one state, but we live in another state. Box #13 shows resident state tax number. Do we pay resident state tax on nonresident retirement?

[SteamTrain · Accepted solution]

If your resident state taxes retirement income on 1099-R forms, then yes...Resident state income and taxes.

You worked all your life for a company in NY, and then retired to New Mexico?   It's only taxed by New Mexico.

A 1099-R from anywhere is only taxed by your resident state.....Only exception is the year you moved....if you started getting retirement payments before moving, then you have to allocate the income to whichever state you lived in at the time the $$ were issued  (usually monthly) for that year.

[haleygirl]

The nonresident state withdrew taxes from my retirement income.  What happens to that tax?? Do I file a return in the nonresident state to see if I get any back?

[AmyC]

Yes, you can file a non-resident return showing no income to get the tax back. Alert the company to withhold taxes for the proper state or none at all. You will want to either make estimated payments to the state or have extra taken from your job, social security, etc.