How do I report my 1099-R information (pension) when I moved to a different state in the middle of the year?

[mfm-ca]

My wife and I moved to a different state in the month of October 2018.  We started our current rental lease on 10/21/18, and the sale of our house in our previous state closed on 10/23/18.  Although I notified my pension company we moved to a new state on 10/30/18, they apparently didn't update our new state until the December 2018 pension payment.  As such, we have two 1099-Rs, one through November 2018 for the previous state (which has state income taxes) and one for December 2018 for our current state (which has no state income taxes).  I requested updated 1099-Rs from the pension company, but they claim this is my responsibility.  Are we stuck with the additional month of pension income for our previous (and taxable) state?  Or is this something that I can adjust within TurboTax?

[MichaelL1 · Accepted solution]

Yes, you can adjust this in TurboTax when you do the partial year returns for each state.

You would reduce the first state by one payment (the taxes withheld cannot be changed) and then the 2nd state you would increase pay one payment.

Then 2019 return will be easy when you stay in the state you just moved to.  Companies that issue 1099R's can be very reluctant to issue a corrected one.

[mfm-ca]

So, it doesn't matter that the 1099-R has income assigned to the previous state for November 2018?  I had entered in our initial information into TurboTax Deluxe before the 1099-Rs were issued, and I had assigned the first 10 months to the previous state, and the final two months to our current state.  Seeing the 1099-Rs made me question whether I could do that.

[MichaelL1]

Yes, when you get to each state return, there will be questions about allocations that you need to carefully go through.

[mfm-ca]

Thank you.  At least with our current state of residence, there is no state income tax or return.  We just have to deal with our previous state.  The rest of the previous state return (social security, interest income, etc.) should be more straightforward, especially since the previous state doesn't tax social security.