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New Member
posted Jun 4, 2019 10:14:20 PM

I live in SD and I get a pension from IA, Turbo Tax tells I should not have an amount in Pensions on IA return, how do I get past this error?

Non-resident of IA but get an IA pension, how do I show this on my IA return when turbo tax tells me I should not have a value for pensions/annuities when I am a non-resident?

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1 Best answer
Level 15
Jun 4, 2019 10:14:22 PM

TurboTax is correct and the Iowa pension or any other pension is only taxable to the state you are living in (if there is State income tax).

You only pay state income tax to the state where you live, not the state where you earned or qualified for the pension.

Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state.

1 Replies
Level 15
Jun 4, 2019 10:14:22 PM

TurboTax is correct and the Iowa pension or any other pension is only taxable to the state you are living in (if there is State income tax).

You only pay state income tax to the state where you live, not the state where you earned or qualified for the pension.

Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state.