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Is state tax applicable in my case?

  • I withdraw from 401K savings & received 1099-R. I am residing out of country entire year. Do I need to pay state tax well in addition to Fed?
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3 Replies

Is state tax applicable in my case?

You owe state income tax on all your worldwide income if you are domiciled in the state.  That essentially means the location of your permanent home.  If you still have a home in your state that you plan to return to some day, your are probably still domiciled there.   You can be temporarily away for a long time (years even) and as long as you maintain your residence with an intention to return, you are still domiciled there.  You generally can't establish a new domicile unless you also take active steps to abandon your prior domicile.  

 

For more information, we would need to what state, why you are living overseas, and other circumstances that would show where you are domiciled. 

Is state tax applicable in my case?

Hello @Opus 17, I appreciate your response. I lived in OH for 9.5 years on temporary work visa then returned to India in 2019. I didn't own a house there. While living in India, due to my personal circumstances I wothdrew 401K amount in 2024 March- April, and received 1099-R. 

Is state tax applicable in my case?


@rachura wrote:

Hello @Opus 17, I appreciate your response. I lived in OH for 9.5 years on temporary work visa then returned to India in 2019. I didn't own a house there. While living in India, due to my personal circumstances I wothdrew 401K amount in 2024 March- April, and received 1099-R. 


It doesn't sound like you are domiciled in Ohio since 2019.  Are you even a US person for taxes?  (Citizen, green card holder?)  If you are not a US person for taxes, you don't file a form 1040, you file a non-resident return 1040-NR.  Turbotax can't prepare that form, you need a different tax software provider.  Turbotax partners with Sprintax, but there may be others. 

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