Where do I enter information on 1099r (box 2a with box 7 4D) on form 763 VA Non Resident. I live in NY and my mom died and left me an annuity. It was taxed in Virginia.

[karenfisk]

box 2b doesn't have any checks

[DS30 · Accepted solution]

Actually, you will not list the inherited 1099-R on a nonresident VA state income tax return related to a 1099-R payment from an annuity if you are a resident of NY. (I am sorry for your loss).

The federal law prohibits any state from taxing pension income of non-residents, even if the pension/annuity was earned/create within the state.

So if VA withholding were taken out, you will actually need to file a $0 VA nonresident return to get back all your withholdings. You will report the entire 1099-R distribution only on your NY resident state income tax return.

In order to get the full refund of your VA state income tax withholdings, you will need to file a nonresident VA return but report zero "0" income from VA. You must mail in this VA nonresident state income tax return and include your 1099-R information. You will want to include an explanatory statement with your VA return stating your situation (that inherited a retirement annuity from your mother who passed away and VA withholding were taken out in error since you are a resident of NY).