beneficiary of a retirement and life insurance

[whitehset]

Hello 

I received both in early Feb 23 as a one-time lump sum.  The state I lived in holds out taxes and taxes were held out for AR.  However,  I moved to AL in October 2023.  The question is will I need to pay taxes on this income?

when I filled out the paperwork and received the lump sum payments I had no idea to hold out income tax for another state, I wasn't even considering moving then.

[Opus 17]

If you moved your permanent residence from state A to state B during the year, then you must file a part-year resident tax return with state A and a part-year resident return with state B.  You allocate your income based on where you were living at the time the income was received.  In your case, lump sum taxable income paid in February would be assigned to AR only.  However, if you also received (for example) $2000 per month social security benefits, you assign $20,000 (10 months) to AR and $4000 (2 months) to AL.