I changed state residency midyear due to military retirement. Am I subject to taxes for the entire year to my former state, despite not living or earning money there?

I was a Missouri resident while active duty military. I retired in 2017 while living in Maryland and subsequently changed my residency to Maryland. Turbotax is saying I owe taxes to Missouri for all of 2017, including for my civilian and military retirement pay earned in 2017 after I was no longer a Missouri resident.

3211

Level 15

Jun 4, 2019 12:53:06 PM

In effect, you "moved" during 2017. Therefore you'll need to file two part-year resident state tax returns for 2017: one for your military State of Residence, and one for the state you began living in after retirement. You can be taxed by MO for your income up until you began living in MD. MD can tax all your income after that date.

This FAQ explains how to file a part-year resident return in TurboTax: https://ttlc.intuit.com/questions/1901227-how-do-i-file-a-part-year-state-return

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I changed state residency midyear due to military retirement. Am I subject to taxes for the entire year to my former state, despite not living or earning money there?