If I lived in Virginia all of 2021 and received a 401k (edited) distribution while living there, do I count it as WV Income while Nonresident like my WV unemployment?

[drchris17]

Any assistance would be helpful because this is a little confusing given I have never taken a 401k distribution early due to unemployment and having Covid19.

[rjs · Accepted solution]

A pension and a 401(k) are not the same thing, but the answer to your question is the same for either one. A pension or 401(k) distribution is always considered income from the state where you live when you receive it. So it is not like unemployment from another state. If you lived in Virginia all year, your pension or 401(k) distribution is Virginia income.

If you have other questions about your retirement distribution, please be clear about what type of plan it is from.

[drchris17]

My apologies about that. It was weird how the terminology was on TurboTax but thank you so much for you assistance. 

[Opus 17]

Where is your domicile, your permanent residence?  If your permanent home is WV, then all your income is taxed in WV no matter where you are living when it is paid.  It is possible for your permanent home to be in one state even if you spend a long time in another state.  You would also owe a non-resident tax return to VA, and WV will give you a credit against BA tax you paid on the same money.  

Ask for more details if you are a resident of WV.