What state for Non-qualified pension plan payment

I entered a W-2 for a non-qualified pension distribution. The pension is from a NY corporation but I live in AZ. When TT asks "Yes, I took this money out of my non-qualified pension or 457 plan", which state do I select?

1064

Expert Alumni

Mar 15, 2024 11:49:42 AM

Arizona.

Pensions are taxed by the state where you live, not by the state where the pension is coming from.

Level 1

Mar 18, 2024 8:51:07 AM

Yes, I know the DISTRIBUTION is taxed as ordinary income where I reside, but TT asks for a state designation (I’ve already entered my AZ info in the program) and I think the program is assuming it was from a (state) 457 plan… but it’s not. It’s a top hat non qualified pension plan. I have had this income for many years and this is the 1st year TT asking for a state…

Expert Alumni

Mar 21, 2024 9:27:26 AM

Select Arizona.

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What state for Non-qualified pension plan payment