1099r reported to wrong state

[dphares]

I moved to to MO 5/03/23 and took a distribution from my 401k on 7/8/2023; however, the income was reported to my old state of residence, CA, on my 1099-R. The management company says they will not issue a corrected 1099-R because it’s not a correction. Is there a way to have this corrected? 

[DianeW777 · Accepted solution]

Yes, you can correct it when preparing your tax return. The retirement is not compensation and therefore is not taxable to California (CA).  Below is a link and information about nonresidents. When you go through the Missouri (MOT) return watch for the possible pension exemption (noted below) to be sure you get it if you qualify.

If you had CA withholding on your 1099-R, be sure to list that on the form when you enter it.  Leave the Box 16 blank and do not enter a zero. If there is no CA withholding there is nothing to enter in the state section of your 1099-R.  The MT exemption is explained later and will take place when preparing your MT return.

California Nonresidents: (see link for more details)

Nonresident. California does not tax the IRA distributions, qualified pension, profit sharing, and stock bonus plans of a nonresident. California taxes compensation received by a nonresident for performance of services in California.

Missouri Residents: (see link for more details)

Missouri law allows for a deduction for public pensions, private pensions, social security and social security disability payments on the 2023 Missouri income tax return, if certain income limitations are met. Complete Form MO-A, Part 3, enter the total of the public pension, private pension, social security and social security disability exemptions on Form MO-1040, line 8.

@dphares 

[Edited: 03/02/2024 | 8:39 AM PST]

[dphares]

Thank you for your answer!  Is it any different for Missouri (MO)

[DianeW777]

Please see the edited response in the previous post.  It now shows the Missouri (MO) rules for taxable retirement distributions.

@dphares