We moved from Illinois to Arizona in 2022. For that year, and that year only, we needed to apportion the retirement income to the two states. Using TurboTax for that year we apportioned the 1099-R income based on the date of the move between the two states. We filed state returns for both states.
In 2024, we received the 1099-R from a provider of my wife's pension that was sent to our Illinois address and forwarded. Its state was still listed as Illinois. We filed the taxes for 2023 crediting that income to Arizona regardless of what the 1099-R said. I didn't think much about it and we had no problem with Illinois over this. But my wife did call the provider to let them know that we had moved. This call was made on April 12, 2024.
In 2025, we received TWO 1099-Rs from this provider, one for Illinois and one from Arizona, apportioned as if the move occurred on April 12, 2024. The provider seems to have assumed that this was the date of the move.
Not knowing what to do about this, I filed for an extension and paid what was due to the IRS and Arizona. Since then, I've been trying to get the provider to issue a corrected 1099-R. This they have absolutely refused to do. The issue has escalated to higher levels of the company. They are not going to budge, though they now acknowledge that we live in Arizona and will handle this correctly in the future.
So my question is, do I fill out forms for both 1099-Rs and simply assign them to Arizona regardless of what the 1099-Rs say, or must I do something else?
