Retirement contributions VA Nonresident

Forum|Forum|7 years ago
June 1, 2019
4 replies
37 views

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.

TurboTax Deluxe Online

MarilynG

Level 15

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.

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edgelser2

Level 3

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

Level 15

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.

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