Hi, I earned and deposited money to my TSP while was living in NJ, and I moved to MD. I withdraw money from TSP and paid tax on it, do I have to pay tax again.

[hhebishy-gmail-c]

I tried to see if the turbo tax will charge me again or not, and MD is asking me to pay 10K on extra tax was not earned in MD, I don't think that is right, this amount was not earned in MD, why turbo tax ask me to pay this amount for MD, can someone advice please. Thanks

[AmyC]

When you moved to MD, income received while a resident counts towards resident income. If you removed the money before leaving NJ, MD has no right to tax the money.  If you were living in MD and then decided to take the money, MD has a right to tax the income.

The money withdrawn is added into your federal income along with taxes paid.  You may have state taxes withheld that can be a credit as well.

[hhebishy-gmail-c]

I don’t agree with this, because I already paid federal and state tax on it when I was in NJ for 10 years , how come, when I relocate to MD , I pay tax again, TSP already deducted 30k from it as taxes, my pension should not be owned by IRS, I think I should get CPA tax expert advice, at least if have to pay to be deferred to later not now,I should not pay to MD, because I paid NJ before for the last 10 years, paying tax on tsp again  I feel something is not right here. 

[CatinaT1]

How have you paid NJ taxes for the last 10 years? Had you been making withdrawals? Did you have state withholdings for your tax form?

Funds are generally not taxable until disbursed.