I am having trouble with the TurboTax page that asks “Where is this distribution from?” The distribution is from the California State Teachers' Retirement System. I entered all of the information from CalSTRS on the 1099-R page.
On my 1099-R, box 15 has the California ID number. I have been an Arizona resident for almost 30 years. I read on a previous post to go ahead and delete the California ID information, since I am not paying any California taxes. I tried that, but I still have the same problem on the “Where is this distribution from?” Page…Here is the issue:
TurboTax has three boxes at the bottom of that page (Arizona Distribution Amount, Arizona Withholding, and Payer's AZ State ID No.). TurboTax auto fills the Arizona Distribution Amount (which is equal to my CalSTRS taxable income). I don’t know if this box should be filled in or not? Would the CalSTRS Retirement money I am receiving be listed as Arizona Distribution Amount? If not, I have tried a million ways to delete it, but I can’t do it.
Thanks in advance for your help.
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The term "Arizona Distribution" depends on the context in which it was used. Your CalSTRS pension is taxable in Arizona. If the taxable amount you entered in the 1099-R screen is also being treated as taxable income on your Arizona return, then you have entered it correctly. California does not tax the CalSTRS benefits of nonresidents.
Arizona law states that residents are taxed on the same income they report for federal purposes, including income earned and retirement from other states. There is an exception that only applies to Federal and Arizona retirement plans. However, there are some exceptions allowed under Arizona tax law. To learn more, please see Determining Filing Status for Non-Residents, Part-Year Residents and Military.
You can preview your return before filing to find out how your taxes were calculated and to view the forms TurboTax has prepared from your entries. See here for details.
Thank you very much for your speedy response.
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