Retirement contributions VA Nonresident

[mariajar1]

I get an annuity from University of California for working at Los Alamos National Laboratories.  I now live in VA.  I no longer make contributions, but this question is confusing.  I did make contributions, but if I answer Yes, it gets more confusing.

Did you make contributions to a retirement plan when you did not live in Virginia?  Yes, but I no longer make that contribution - just get an annuity, which I posted a 1099-R for.  If I answer Yes, it says These contributions weren't taxed on your federal return.  Did you state tax your contributions? 

I need help with this.

[MarilynG]

When you are asked 'if you made contributions' TurboTax is referring to the tax year 2018.

Answer NO to these questions, since you are now only receiving the income from previous contributions. 

[edgelser2]

I have been a retired Virginia resident for 4 years.  In the year 2020 I am now taking withdrawals from an IRA that I  contributed to while working in the state of New York from 1990s - 2016.  I too am confused by the questions TurboTax Deluxe 2020 is now asking:  "Have you ever lived outside Virginia"  well yes.  "Did you make contributions to a retirement plan when you did not live in Virginia?"  again, yes.  "Did your state tax your contributions?"  It is a traditional IRA, so yes, I paid income tax on the W2 wages I earned every year.   As you follow this path, things indeed get messy...... 

So, I want to verify that the question TurboTax SHOULD be asking is:  Did you make contributions to a retirement plan this tax year, IN 2020??  That ONLY taxed contributions to a Traditional IRA made in 2020 are to be considered here....  

[DaveF1006]

The reason why this question is asked is that Virginia is trying to make a determination if you paid taxes in the State of New York for that  distribution. You can check this by checking boxes 12-14 on your 1099R. If there is indication that this distribution was reported to the State of New York, then you will need to file a New York non-resident return. You will then be eligible to claim the distribution as non-taxable income to the State of Virginia as income subtraction. Please review this link and look under the section that addresses Retirement Plan Income Previously Taxed  by Another State. 

The good news is that if there is nothing in Box 12-14 on your 1099R, answer no to the question if you were taxed by the other state for your contribution, you will not need to file a New York non-resident return.

[edgelser2]

The questions TurboTax is asking are all specific to a "contribution deduction" (not anything about a distribution) : 

"Did you make contributions to a retirement plan when you did not live in Virginia?" and "Did your state tax your contributions?"  For me, back in 2016 and earlier living in New York, I made contributions to ROTH accounts using post-tax dollars when I was living in New York, so it's hard not to answer these questions as "Yes"......  Some further clarity in the Turbotax questions would be very helpful.  And maybe having some additional help available on those pages as well.  

That being said, when I made my traditional IRA withdrawal in 2020 now as a Virginia resident, I was living in Virginia and chose to have Virginia State income taxes withheld (NOT New York).  So from what you are saying I should focus on only the contributions made to the account from which I am withdrawing from and answer "No" to "Did your state tax your contributions".  I did NOT have any New York income tax witholding from  these 2020 distributions. 

Thanks for your timely responses!