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I moved from NY to WA on 6/2 of 2023. I'm considering taking a lump sum from my NY employer's 457(b). Will I have to pay NY state taxes on it if done in 2023 (vs. 2024)?
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I moved from NY to WA on 6/2 of 2023. I'm considering taking a lump sum from my NY employer's 457(b). Will I have to pay NY state taxes on it if done in 2023 (vs. 2024)?
Income is taxed based on the state of your permanent residence when you receive the income. New York will not tax your withdrawal made after your move, assuming this is a permanent move and New York is no longer your state of residence. You will file a part-year resident NY tax return, and Turbotax will require that you manually allocate all your income sources to New York based on when they were paid. (For example, if you have a regular broker/investment account, you will have to review your statements to see which dividends and capital gains happened before 6/2/23.) You have to allocate your income manually, Turbotax can't guess for you. If you get a 1099-R for the 457 account, you can allocate zero % to NY, unless you also took withdrawals before you moved, then allocate the correct percentage.
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I moved from NY to WA on 6/2 of 2023. I'm considering taking a lump sum from my NY employer's 457(b). Will I have to pay NY state taxes on it if done in 2023 (vs. 2024)?
...Another thing....make sure you change your address with the 457 administrator, to Your new WA address . Do that well before you take the distribution. Otherwise, they may be required to withhold some NY tax based upon your old NY address that they have on file.
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