@mlzeigler wrote:
I had a local accountant help me determine my estimated tax payment before the end of 2022. She told me that these types of withdrawals have an exception and are not treated like the regular income so are taxed in the state where you reside not the state where the withdrawal occurred that is why I'm double checking this.
You are taxed based on where you live when the withdrawal was made. Even though the withdrawal is reported over time (per the CARES act), the money was still actually withdrawn in 2020.
You will need to file a non-resident return for the state you lived at the time that reports only that income, and a resident return for the state you live now that reports all your world-wide income. Your current home state should give you a credit for taxes you pay to the other state. Note that when you have a non-resident state return, you must manually tell Turbotax what percentage of each item of income is assigned to each state, the program isn't smart enough to assume that for you.
