401K withdraw in Texas - moved to Missouri 3 months later

[Steve198]

Hi,

We withdrew some 401K's in Jan 2022 while living in Texas. Moved to Missouri in March 2022 and still reside in Missouri.

Are we required to pay Missouri state tax on this transaction?

Thanks

[ee-ea]

Are we required to pay Missouri state tax on this transaction?

NO

You are a part yaer resident of MO.

[Opus 17]

As a resident of Missouri, you are required to report and pay tax on all your worldwide income to the state of Missouri. However, since your residency did not start until March, 2022, you only report and pay tax on income received after the date you became a permanent Missouri resident.

however, TurboTax cannot do the income allocation for you. TurboTax doesn’t know where you lived when you were paid various parts of your income. When you indicate that you are a part year resident of Missouri, TurboTax should ask you to manually allocate each source of your income based on where you lived when it was received.

[SteamTrain]

@Steve198 

But ya kind-of have to be careful when preparing and filing as a MO part-year resident.

MO is one of a couple states that has part-year residents prepare and file their Part-Year taxes either:

1) As-if you are a full year nonresident...declaring only the income earned or received during the MO time as a resident as being MO income.

or

2) As-if you are a full year resident, including all income (even the 401k distribution) as income, and taking a credit for the taxes paid to the other state while living there (but TX has no income tax)

You need to make sure you use procedure #1.