State withhoding sent to wrong state

kolkrkr06 — Sat, 15 Apr 2023 21:45:50 GMT

My wife took an RMD from one of her 403b accounts in 2022. We provided an address change online to the company in 2012 but, according to said company, we failed to change the tax reporting state on the online form. It should be noted that, when the first RMD form was completed in 2022, it was in hard copy mailed to the company and nowhere on that form was the tax reportable state requested - the only address requested was our home address. Now it seems we must file returns in both VA and CA and may end up paying more state income tax in combination. TurboTax won't seem to ignore the second state even though I left the CA info off the 1099Rs involved.

Re: State withhoding sent to wrong state

MonikaK1 — Wed, 19 Apr 2023 19:00:17 GMT

You can file a nonresident return for the incorrect state to get the withholding back. Indicate in that return that you don't have income sourced in that state if that's the case.

Prepare the nonresident state return first, then your resident state return. If you did end up with any tax liability paid for the nonresident state (not the withholding, but any actual tax shown in the state return), you may be able to take a credit for it on your resident state return.

See also this TurboTax article on multiple-state situations.

topic State withhoding sent to wrong state in State tax filing

State withhoding sent to wrong state

Re: State withhoding sent to wrong state