topic Investment Income and IRAs in State tax filing

Investment Income and IRAs

rsherry8 — Mon, 23 Feb 2026 12:06:43 GMT

A person moves to Delaware for a temporary job assignment. They maintain another place to live in a different state. While in Delaware, he/she takes money out of her IRA and sells a stock at a small gain. Is the distribution from the IRA taxable in Delaware? Is the capital gain taxable in Delaware?

Re: Investment Income and IRAs

MaryK4 — Sun, 19 Feb 2023 22:27:45 GMT

If you did not change you state tax residency or maintain an abode in Delaware and spends more than 183 days there, you can report and pay your 1099-R and capital gain in your resident state (as long as the capital gain property was not Delaware-source).

Re: Investment Income and IRAs

rsherry8 — Sun, 19 Feb 2023 23:42:40 GMT

If the person lived in Delaware from Jul 15, 2022 to Feb 1, 2023 that is more than 183 days. However, it is less than 183 days in 2022. So, in this case does the person have to report the investment income in Delaware?

Re: Investment Income and IRAs

PattiF — Sun, 19 Feb 2023 23:53:50 GMT

No, you do not need to claim the stock sale and IRA distribution that occurred in 2022. For that year, you were present in the state for less than 183 days.

@rsherry8